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Please help me with Case Study Outreach Networks First Venture Round Questions. Please answer the following questions: 1. What are the challenges of valuing an
Please help me with Case Study Outreach Networks First Venture Round Questions.
Please answer the following questions: 1. What are the challenges of valuing an early-stage company? What are some of the assumptions that need to be made? (10 marks) 2. In what ways is ORN a typical start-up company? Do any of its particular characteristics give Perez an opening to push back on the terms of the deal? (10 marks) 3. What is the value of the firm under the venture capital method? (15 marks) 4. What is the value of the firm under the discounted cash flow method (expected NPV should be used)? (15 marks) 5. How does the DCF value differ from the value under the VC method? (5 marks) 6. Complete a sensitivity analysis for both methods and comment on the results. (15 marks) 7. What are some of the differences between a target rate under the VC method and a market-adjusted rate, such as that obtained from the CAPM. (10 marks) 8. How is it that the Everest Partners offer $30 million in funding for 30% of the company? Is that offer as off-base as Perez seems to think it is? (10 marks) 9. Given the equity stake that Everest Partners is demanding, should Perez take VC funding? (10 marks) Any results should be analysed and evaluated. A portion of the marks in the calculation questions are attributable to the analysis accompanying the numbers. In your answers, in addition to the information from the Case Study, please apply the concepts from the appropriate areas of financial and economic theory, discussed during this and all previous modules during your course. Your answers should include appropriate numerical data and, if appropriate, charts/graphsStep by Step Solution
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