Assume that an entrepreneur/founder and a venture capital fund agree that the VC fund with invest $10 million (A) in the entrepreneurs company and that the VC should deserves a 30% compound annual required return (r) on investment. The VCs shares will have a denomination of $1.00/share (p). Assume further that both parties agree the company will aim for an initial public offering in four years (n), when the companys expected net income (NI) will be $6.0 million and the price-to-earnings ratio (P/E) for similar IPOs is expected to be 20X at that time. Calculate:

a. The pre-and post-money valuation of the company after this financing

b. The percentage of the companys equity the VC will receive for the $10 million investment

c. The expected value per share of the VCs stockholdings in four years if the company evolves as predicted (achieves a 30% compound annual return).