Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Follow up on the previous POWSA question. Suppose that Buffet paid for the advertising and now you are getting started with operations and sales, but

Follow up on the previous POWSA question. Suppose that Buffet paid for the advertising and now you are getting started with operations and sales, but you realize two things. First, you can sell \\( \\$ 10 \\) million (annual revenue) with \\( \\$ 3 \\) million annual cost. Second, that situation will only last 4 years and you expect no profit after that. What is the market cap in that scenario? ie what is the market value of the equity (yours and Buffet's)? Give the answer in millions (so if you get 12.3 million, for example, enter 12.3)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292

More Books

Students also viewed these Finance questions