Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all 4 please QUESTION 4 #4-8 A VC firm wants to invest $4.0 million in Making Stuff Corp.. a startup firm. Making stuff is

image text in transcribedanswer all 4 please

QUESTION 4 #4-8 A VC firm wants to invest $4.0 million in Making Stuff Corp.. a startup firm. Making stuff is expected to go public in 4 years. Eanings are not projected until year 4, and are projected t be S3 million in year 4. Comparable firms are trading at P/E ratos of 20x. Making Money has 2.5 million shares of stock outstanding. The VC firm has a requred rate of return of 40% 4 Calc the post money valuation (today). (answer in whole S. do not round to millions) QUESTION 5 What is the VC % ownership at exit? (calc as % and round to 1 decimal) QUESTION 6 What is the Pre-money Valuation? (answer in whole numbers. do not round to millions) QUESTION 7 What is the implied current price/share? (round to 2 decimals) QUESTION 8 How many new shares will be issued? (answer in wwhole numbers. do not round to millions) Click Save and Submit to save and submit. Click Save All Answers to save all answers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

11th Edition

1259277178, 978-1259277177

More Books

Students also viewed these Finance questions

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago