1. Now, assume that KradFoods Corp managers do not want to sell the company to a competitor and to keep their jobs the they decide to buy out the

company using some money they have saved, and more importantly a Venture Capital (VC) that will finance the deal.

The VC will sell its equity stake in five years and will get a total of $15m (expected value in year 5 to get the expected total return of 21% in their investment, the balance return will come in the form of undisclosed interest income).

Please calculate the percentage of the company that will have to be given to the VC by the managers in exchange for its financial resources. Please use the multiples calculated before to value the company as a reference for the calculation of the "Exit Multiple" for the VC.

Terminal Value $11,224

PV Terminal Value $4,662

NPV $3,869

Enterprise Value $8,531

P/E ratio =22.55

EV/EBIDTA ratio =9.89

Debt on B/S $5,571

Value of the equity $2,959