Question 6: Venture capital method. Consider the same sample in class lecture notes. The venture capital has 1 million shares owned by the entrepreneur. The venture capital needs two rounds of financing of $3 million and $2 million today (t=0) and after two years (t=2). Annual discount rate is 40% for each of the four years. The terminal value in year 4 is $50 million. Solve the following parameters: Posti, Prei, I1, F1, Y1, X1, P1 and Post2, Pre2, I2, F2, Y2, X2, P2. Also illustrate the dilution of ownership just as in my class lecture ntoes. . |