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.$

Using the information provided above, answer the following:

a$.$ Calculate the P$/$E at year $5.$

b$.$ Calculate the present value of the venture.

c$.$ Calculate the issue share price.

d$.$ Calculate the present pre$-$money and the post$-$money values.