Question 2: You've convinced a VC firm to invest $2million in your venture. You don't expect to be profitable until year 4, when you expect to have a net income of $4million. A firm that is comparable to your own currently has common stock trading at $40/share. Their most recent net income was $30million, and there are 15 million shares of their common stock outstanding. A: Use PE ratios to determine the value of your venture at the end of four years. B: If the VC wants a 50% rate of return, what is the present value of your venture? C: What percent ownership will you have to give up for the $2million investment? Question 2: You've convinced a VC firm to invest $2million in your venture. You don't expect to be profitable until year 4, when you expect to have a net income of $4million. A firm that is comparable to your own currently has common stock trading at $40/share. Their most recent net income was $30million, and there are 15 million shares of their common stock outstanding. A: Use PE ratios to determine the value of your venture at the end of four years. B: If the VC wants a 50% rate of return, what is the present value of your venture? C: What percent ownership will you have to give up for the $2million investment