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Gordon's Reproductions posted the following results in 2 0 2 1 and projected results through 2 0 2 6 . Gordon Green, the owner, wants

Gordon's Reproductions posted the following results in 2021 and projected results through 2026. Gordon Green, the owner, wants to
retire between now and the end of 2026. Assume a discount rate of 24 percent from now until 2026, dropping to 16% thereafter. The
company is expected to grow at 7% per year after 2026. A. Calculate the net present value of the free cash flow for the end of the year in 2022. B: gordon has been told that the Price Earnings ratio for his type of business is 12. Compute the price earnings ratio for current earnings. Then compute the Price Earnings ratio if he waited until 2026 to sell the business. Discount the 2026 value back to 2022 and compare the results. C: Gordon owns 85% of the stock. Assuming that he arranges to sell the business for the highest valuation. What would he receive at the end of 2022 and what would the investors receive. How much would he receive if he waited until 2026 to sell the business? D: Gordon started the business in 2017 with an investment of $23,000. In 2020 he accepted an investment of $200,000 from an angel investor group. They received 15% of the stock in return for their investment. If he waits until 2026 to sell and uses the highest valuation, what will his internal rate of return be? What will the internal rate of return be for his investors?
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