Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Connor McDavid is the greatest hockey player of all time....and because he is so awesome, the Oilers have paid him a lot of money.
Connor McDavid is the greatest hockey player of all time....and because he is so awesome, the Oilers have paid him a lot of money. Connor has been very smart in saving some of that money, knowing that he might not play hockey forever. Connor has set aside $2,000,000 of cash in his bank account thinking he might be able to invest it to earn a few extra bucks. He expects that he should be able to earn 30% (per annum) on his ideas. Connor is trying to decide what might be best for him to invest in. He doesn't know much about venture investing so he has decided to hire FIN 4415 students at NAIT to help him do the assessments. The three opportunities he is considering are below: Opportunity Estimated Annual Revenue Multiple Anticipated time to Exit Hockey Pool Tracking App $10,000,000 2x 3 years McDavid's Musical Toothbrushes $7,000,000 3x 6 years McDavid Hair Salon $5,000,000 5x 4 years A. Using the comparable valuation method (revenue multiples), what is the forecasted exit values of each of the ventures? (Do not use commas to separate thousands, eg. 2000000).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started