A Venture Capital firm(VC Inc.) is planning to invest in an e-commerce start-up(EC ltd) VC Inc, wants a large stake in this start-up firm(EC Ltd) and has plans to go for a 21% stake in the company. EC Ltd. owners are willing to give up a 21% stake. Finance Manager Sui at VC Inc. has made cash flow projections for EC Ltd. Sui has suggested the following:

Cash Flows of EC Ltd. will grow at a constant rate of 8% every year for the first five years(From 0-1, 1-2, 2-3, 3-4, 4-5 years). From the 5th year onwards, it will grow at 6% every year, subsequently forever.

The Cash Flow today is $100 million. The discount rate is 12% APR compounded annually. How much is EC Ltd. going to raise from VNC. today if they are diluting their stake by 21% based on the valuation made by Sui?

Note: Calculate the Value of EC Ltd. today 21% of the Value of EC Ltd. is the amount being raised. Do not add the time 0 cash flow