b) Kameni Osunda the CEO of MtotoNice a company that sells educational games for kids below the age of 10 projects that if they raise $250k for their startup they will have revenues of at least $4,000,000 in 4 years' time. Similar listed companies to MtotoNice trade a 3 times multiple of sales but Kameni is aware that this multiple may be too high for MtotoNice since it is much smaller and not listed. Kameni would like you to advise him on: i. ii. iii. What share would a venture capitalist require today for a $250k investment if her required rate of return is 45%? [5 Marks] If the company has 150,000 shares outstanding before the investment, how many shares would the VC be given and what would the price per share be? Assume 45% ROR [3 Marks] The VC realizes there is need for making a stock option pool of 15% in Kopokopo, what percentage should they ask for in MtotoNice now? [4 Marks]