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question 2 answer please Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of
question 2 answer please
Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio: Comparable Companies Ticker Symbol Price/Sales Starbucks SBUX 4.95 Darden DRI 2.46 Restaurants Yum Brands YUM 6.15 McDonald's Corporation MCD 8.37 $10,044,000 $6,579,000 $7,380,000 $1,200,000 Because this investment is very risky, you want to earn a return of at least 40% per year on your investment. What is the Post-Money Valuation? $1,200,000 $6,579,000 O $3,356,632.65 O $1,712,567.68 Step by Step Solution
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