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?

Year of Revenue After-tax After-tax Discount PV of growth Sales) Margin Profit Factor Earnings 1.30 15% 3.4 m 4% 20 25 4 30 10 35 15 40 16 7 12% 10 As you see from line 7 and beyond (7+), growth falls to 120 o, 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