Bill Haskell, CEO of FreeSurf.com, wants to raise $4M in Series A funding for his company. Haskell projects that FreeSurf will reach $10M in net income in five years. a. If comparable companies trade at 20X their P/E ratio, then what percent ownership should Haskell offer a VC today in return for a $4M investment in FreeSurf assuming the VC's target return is 50%? b. Suppose the company has 1M shares outstanding before the VC invests. How many shares should the VC ask for? What is his price per share? 8. This year DuckDuckGo Inc., had the following: EBIT: -5M Revenues: 15M Debt: 10M Use comparables analysis to value DuckDuckGo, given the following comparables' data. P/E Ratio Revenues EBIT Enterprise Value Debt Altavista 18 100M 75M $508M 100 Ask Jeeves 20 30M 10M $35M 15