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Question 10 10 points You estimate that your company will have earnings that are 50% of revenues. Your projected revenues are 5 million AED in

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Question 10 10 points You estimate that your company will have earnings that are 50% of revenues. Your projected revenues are 5 million AED in exit year. You have learned that companies in the space command a P/E ratio of 12. You approach an angel investor who knows about that P/E ratio A) Calculate the value of the company based on the P/E ratio. (4 marks) B) Calculate the post-money valuation based on an ROI of 15% (the investor is happy only with 15X or above). (2 marks) C) After some negotiation, the angel investor decides to invest 200,000 AED. Based on the post-money valuation, what % equity should you offer the investor. (2 marks) D) If the company issued 1 million shares, what is the value of each share after the angel investment (2 marks) For the toolbar, press ALT F10 (PC) or ALTHEN+F10 (Mac) BIUS Paragraph 14px AIX OG QE T X X BT Te 9 2 (:) . o Arial EX E

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