MetroPCS LTE 7:34 PM * 21%10 WA-3-Valuation; Part 1-Fundamental WA-3- Valuation; Part 1- Fundamental Method. Use ONLY Eveel for this WA: and make sure I can trace ALL your calculations. I can omy do this if you did NOT plug in the end answers. If done via Word file, no points will be given. Here are two problems under this assignment: Pro Given the following information, and using the VC method of valuation, determine the % em of the company that needs to be given up for $1.5 m investment. (10 points total) Required ROR by investors): Net income in five years: Expected P/E ratio in four years: 12 times 25% S 3.2 m Problem 2, Part A. Apply the fundamental method of valuation to the following data in order to find a market value (price) for the venture. Part B. What portion of the company should be given up if there is a need for $1.6 m in venture capital? (30 points total) Year 96 of After-tax After-tax Discount PV of Mar Sales) Profit Factor 15% 3.4 m 1.30 2 20 3 25 4 30 5 35 6 40 4% 10 15 16 12% As you see from line 7 and beyond (7-), growth falls to 12%, and profit margin is 9%. Assume also discount rate for years 7 and beyond falls to 15% and stays the same for all such years. Open With Print