Question 3G SpecificMagic is a growing technology firm focusing on software and hardware solutions for the future. It has managed to hire employees from large software firms and has currently come up with a method of renting items using smart pods delivered via Uber. It forecasts that it will be cashflow positive in 3 years time, with EBITDA of. $100m in year 5.+ As a VC analyst you have been asked by the lead partner to work on the deal and you find some comparable firms in the US market:+ Beta^ 1.2 1.5 DIE 1/3 Company EVIEBITDA 10 14 Amazon Uber' The tax rate is currently 30%. The risk-free rate is 3% while the expected market risk premium is 5%.4 Your VC fund plans to invest $25m into this startup. The GPs feel that early stage firms are riskier than listed firms and has a policy of adjusting for risk through a liquidity discount of 30%. 1.- Calculate a discount rate for SpecificMagic using the average of comparable firms. You believe that the company will be able to support a D/E ratio of 1/4 and will have a cost of debt of 5%