LAD Venture Partners is looking at the possible investment of $1 million in an early-stage company named NYY. Given the stage of the investment, LAD requires a 35% annual rate of return. NYY earned $500,000 in EBITDA last year, and this amount is expected to grow at a rate of 20% per year over the next five years. Companies like NYY are currently being valued at six times EBITDA and LAD thinks this is a reasonable multiple for the firms valuation in five years time. LAD estimates that NYY will have $1 million in interest-bearing debts and $100,000 in cash by the end of year 5.

1. What is the enterprise value of NYY at the end of five years?

2. What fraction of NYY does LAD Venture Partners need to own at the end of five years in order to realize the required rate of return on its investment?

(Detailed work of calculation pls)