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For Questions 1 9 and 2 0 , use the information concerning Zoom Video Communications, Inc. ( Zoom ) provided below. In 2 0 1

For Questions 19 and 20, use the information concerning Zoom Video Communications, Inc. (Zoom) provided below.
In 2016, venture capital (VC) firm Sequoia Capital was valuing Zoom Video Communications, Inc. (Zoom), then a private company. The VC asked its analysts to use price multiple approaches based on Price-to-EBITDA and Price-to-Revenue because Zooms net income was negative. The analysts at Sequoia Capital have identified as a benchmark the listed companies in the Software and Communications Technology industries. Table below summarizes the information collected:
Average across comparable firms
in software & communication technology
Price to EBITDA (per share)15.0
Price to Revenue (per share)7.0
Assume that Zooms EBITDA and Revenue, respectively, were $80 million and $200 million; and the number of shares was 20 million shares.
Question 19[5 marks]
Compute Zooms EBITDA per share and Revenue per share.
Answer (show the steps/calculation toward your results):
Question 20[5 marks]
Recall that the analysts at Sequoia Capital were asked to estimate the price per share of Zooms stock using Price-to-EBITDA multiple and Price-to-Revenue multiple, respectively. Therefore, they had to compute and report two estimates for the price of Zoom stock. Find the two estimates the analysts would have reported. (Lecture notes pp.68-69)
In case you are unsure about your results in Question 19, feel free to use the following inputs for Zoom:
EBITDA per share = $3 and Revenue per share = $7
Answer (show the steps/calculation toward your results):

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