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A VC is considering an investment. It plans on offering $ 1 6 0 million for the startup. It will need to issue new debt
A VC is considering an investment. It plans on offering $ million for the startup. It will need to issue new debt and equity to finance the investment. You estimate the issuance costs to be $ million. The startup will generate an incremental free cash flow of $ million in the first year and this cash flow is expected to grow at an annual rate of forever. If the target rate is what is the premoney value?
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