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CoGS ratio 15% growth 50% SGA Fosbeck $2.00 SGA Pharmaset $3.50 Pharmaset PPE $3.00 Revenue1 $10.00 Project Life 10 years Tax rate 38% R&D $0.60
| CoGS ratio | 15% | ||||||||
| growth | 50% | ||||||||
| SGA Fosbeck | $2.00 | ||||||||
| SGA Pharmaset | $3.50 | ||||||||
| Pharmaset PPE | $3.00 | ||||||||
| Revenue1 | $10.00 | ||||||||
| Project Life | 10 years | ||||||||
| Tax rate | 38% | ||||||||
| R&D | $0.60 | ||||||||
| Pharmaset probability of approval | 40% | ||||||||
| probability of obsolescence | 5% | ||||||||
| WACC | 12% | ||||||||
| Menlo Venture Investment | $5.00 | ||||||||
| Valuation multiple | 8 x EBIT | ||||||||
| Pharmaset If FDA Approved | |||||||||
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Revenue | |||||||||
| Cost | |||||||||
| SGA if acquired | |||||||||
| Depreciation (unconditional) | |||||||||
| EBIT | |||||||||
| Taxes | |||||||||
| NOPAT | |||||||||
| Terminal Value | |||||||||
| Pharmaset Book Value | |||||||||
| All Equity Case | |||||||||
| Menlo Ventures Share | 20% | ||||||||
| Dividends 1-4 | 0% | ||||||||
| Dividends 5-8 | 20% | ||||||||
| Fosbeck Incremental Cash Flow (After-Tax) | |||||||||
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| If Successful | |||||||||
| If Fails | |||||||||
| Expected | |||||||||
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| Convertible Debt | |||||||||
| Menlo Ventures Share | 15% | ||||||||
| Coupon Rate | 10% | ||||||||
| Fosbeck Incremental Cash Flow (After-Tax) | |||||||||
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| If Successful | |||||||||
| If Fails | |||||||||
| Expected | |||||||||
| NPV | |||||||||
| IRR | |||||||||
| Redeemable Preferred | |||||||||
| Menlo Ventures Share | 15% | ||||||||
| Dividend Rate | 7.5% | ||||||||
| Warrants Price | $0.15 | ||||||||
| Fosbeck Incremental Cash Flow (After-Tax) | |||||||||
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| If Successful | |||||||||
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| Expected | |||||||||
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
