Allen and Nicole founded a new real estate venture last year with $100,000 in equity capital for which they received 3,000,000 shares of common stock. The startup needs an additional $2,000,000 to carry out the founders' optimistic business plan. A venture capitalist, who expects a 40% compound annual rate of return, and the founders agree that the horizon (time to exit) for the investment should be 5 years. The successful venture is expected to produce $4,000,000 per year in income at that time. A comparable venture recently sold shares to the public for $50,000,000, and that its last year of income was $10,000,000. Part 1 a) Calculate the P/E at year 5. b) Calculate the exit value of the venture. c) Calculate the present value of the venture. d) Calculate the percent ownership to be sold and then calculate the shares necessary to achieve that ownership. e) Calculate the issue share price. Allen and Nicole founded a new real estate venture last year with $100,000 in equity capital for which they received 3,000,000 shares of common stock. The startup needs an additional $2,000,000 to carry out the founders' optimistic business plan. A venture capitalist, who expects a 40% compound annual rate of return, and the founders agree that the horizon (time to exit) for the investment should be 5 years. The successful venture is expected to produce $4,000,000 per year in income at that time. A comparable venture recently sold shares to the public for $50,000,000, and that its last year of income was $10,000,000. Part 1 a) Calculate the P/E at year 5. b) Calculate the exit value of the venture. c) Calculate the present value of the venture. d) Calculate the percent ownership to be sold and then calculate the shares necessary to achieve that ownership. e) Calculate the issue share price