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Given the following information, and using the VC method of valuation, determine the % of the company that needs to be given up for $1.5

Given the following information, and using the VC method of valuation, determine the % of the company that needs to be given up for $1.5 m investment. SHOW WORK!

Required ROR by investor(s): 25%

Net income in five years: $ 3.2 m

Expected P/E ratio in four years: 12 times.

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