Last Name: First Name: . QUESTION 3 You are given the following information; including a very helpful Table at the end: Buseline (last year or year 0) sales: $45.00 million Sales growth rate for years 1-5: 40% Sales growth rate for years 6-10: 30% Sales growth rate for years 11-on: 10% Profit margin for years 1-10: 20% Profit margin for years 11-on: 8% Discount rate or cost of capital: 25% during years 1-10; and 14% for years 11-on. Answer the following questions: A. What is the value of this company using the Fundamental Method of valuation? (75 points for this part.) B. For $15 million investment what % of the company should be given up by the entrepreneur? (5) points for this part) C. If you were an advisor to the entrepreneur on this venture deal, what type(s) of advice would you provide to your client- the entrepreneur-? In other words, should the entrepreneur give up to investor(s) the portion of the company that you calculated in Part B? Why Yes or why No? Explain. Outline your thought process, including any assumptions, in this regard. (20 points for this part.) Use Excel for this question. Total Points given: 100. Year Sales $45 Net Income (NI) N/A PV of NI N/A Om 4 Growth Rate NA 40% 40% 4096 40% 4096 30% 30% 3096 30% 30% 10% Profit Margin NA 20% 20% 2096 2096 20% 20% 2096 20% 20% 20% von 10 11 8%