• 1. An entrepreneur needs $500,000 to fund his idea. He has registered a company and needs your advice to know how many percentages of his companys ownership is required to be given to the investors to be able to raise this money (Bank loans are not going to be granted now).
• Investors Required rate of return per year is equal to 100%
• Holding period of 10 years
• Estimated EBITDA of firm in year 10 to be $60 Million, with an estimated EBITDA multiple of 15, cash of $10 Million and interest-bearing debt of $25 Million.