Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED help on 11 and 12 first Chicago method hightec inc WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data

image text in transcribedNEED help on 11 and 12 first Chicago method hightec inc

WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc. Grade; 20 Points; Submit by 11:50 PM; Sunday, Oct 6 Survival Sideways Success Failure 1. Revenue Growth rate (from base of $ 5.00million) 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to failire 55% 15% 25% 9,765,625 7,604,375 18,619,375 3. Revenue level after 5 years- IPO exit $ 15,258,789 44,733,048 $ in the Success scenario 4. Revenue level after 7 years for the last 23,841,858 survival scenario 5. After-tax profit margin and earnings at 15% 60% NA 0 liquidity 6. Price-earnings ratio at liquidity 35 9 NA 32,186,508 7,604,375 7. Value of company at liquidity 939,394,017 $ 2 8 Present value of company using discount rate of 35% 3,938,560 3,090,738 209,497,550 9. Probability of each scenario 4 0.35 0.45 0.2 10. Expeted present value of the company under each separate scenario 73,324,142 $ 1,772,352 $ 618,148 11. Expected present value of the company 6 12. Percentage ownership required in order to invest $4.00 million 7 WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc. Grade; 20 Points; Submit by 11:50 PM; Sunday, Oct 6 Survival Sideways Success Failure 1. Revenue Growth rate (from base of $ 5.00million) 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to failire 55% 15% 25% 9,765,625 7,604,375 18,619,375 3. Revenue level after 5 years- IPO exit $ 15,258,789 44,733,048 $ in the Success scenario 4. Revenue level after 7 years for the last 23,841,858 survival scenario 5. After-tax profit margin and earnings at 15% 60% NA 0 liquidity 6. Price-earnings ratio at liquidity 35 9 NA 32,186,508 7,604,375 7. Value of company at liquidity 939,394,017 $ 2 8 Present value of company using discount rate of 35% 3,938,560 3,090,738 209,497,550 9. Probability of each scenario 4 0.35 0.45 0.2 10. Expeted present value of the company under each separate scenario 73,324,142 $ 1,772,352 $ 618,148 11. Expected present value of the company 6 12. Percentage ownership required in order to invest $4.00 million 7

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Understand Business Finance

Authors: Bob Cinnamon, Brian Helweg-Larsen

2nd Edition

0749460202, 978-0749460204

More Books

Students also viewed these Finance questions

Question

It can be physically harmful.

Answered: 1 week ago

Question

Write short notes on Interviews.

Answered: 1 week ago