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INFORMATION You are employed as an equity analyst at XXX Venture Capital Fund, which has just invested R 1 0 0 million in Hermanus Enterprises.
INFORMATION
You are employed as an equity analyst at XXX Venture Capital Fund, which has just invested R million in Hermanus Enterprises. Your task is to determine the price per share for the investment in Hermanus Enterprises and the premoney valuation as well as decide on the share of the firm that should be demanded by XXX Venture Capital Fund. It is anticipated that Hermanus Enterprises will generate a net income of R million in years' time when XXX Venture Capital Fund plans to exit. Comparable profitable ventures listed on the JSE are currently trading at an average PriceEarnings Ratio of
Currently, Hermanus Enterprises has shares outstanding. Your manager has specified that XXX Venture Capital Fund requires a target rate of return of on the investment.
REQUIRED:
Calculate the following showing all calculations:
The required ownership percentage round off answer to one decimal place
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