Question
Please Help me answer these 5 questions. No work just answers. Thank You Problem 26-7 Venture Capital Financing in the United States 26.2 Venture Capital:
Please Help me answer these 5 questions. No work just answers. Thank You
Problem 26-7 Venture Capital Financing in the United States 26.2 Venture Capital: Commercializing Science You are seeking $1.0 million from a venture capitalist to finance the launch of your online financial search engine. You and the VC agree that your venture is currently worth $3 million and that, when the company goes public in an IPO five years hence, it will have an expected market capitalization of $15 million. Given the company's stage of development, the VC requires a 45% return on investment. What fraction of the firm will the VC receive in exchange for its $1.0 million investment in your company? Round your answer to two decimal places. % Problem 26-8 Venture Capital Financing in the United States 26.2 Venture Capital: Commercializing Science An entrepreneur seeks $9 million from a VC fund. The entrepreneur and fund managers agree that the entrepreneur's venture is currently worth $25 million and that the company will likely be ready to go public in five years. At that time, the company is expected to have net income of $8.0 million, and comparable firms are expected to be selling at a price/earnings ratio of 30. Given the company's stage of development, the venture capital fund managers require a 45% compound annual return on their investment. What fraction of the firm will the fund receive in exchange for its $9 million investment? Round your answer to two decimal places. % Problem 27-4 Forward Contracts 27.2 Forward Contracts A certain commodity sells for $165 today. The present value of the cost of storing this commodity for one year is $9. The risk-free rate is 5%. What is a fair price for a 1-year forward contract on this asset? Round your answer to the nearest cent. $ Problem 27-7 Forward Contracts 27.2 Forward Contracts The spot exchange rate is $1.7777/. The risk-free rate is 5% in the United States and 6% in the United Kingdom. What is the forward exchange rate? (Assume a 1-year contract.) Round your answer to four decimal places. /$ Problem 27-9 Forward Contracts 27.2 Forward Contracts Suppose that KF Exports enters into an FRA with Interfirst Bank with a notional principal of $55 million and the following terms: In six months, if LIBOR is above 7% then KF will pay Interfirst according to the standard FRA formula; on the other hand, if LIBOR is less than 7% then Interfirst will pay KF. If LIBOR is 6.5% in six months, then who pays and how much do they pay? Round your answer to the nearest dollar. will pay $ What if LIBOR is 7.5%? 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