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Shockley's Shock Absorbers (SSA) is raising investment to fund its growth. The company expects to be sold to a larger auto parts manufacturer in four

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Shockley's Shock Absorbers (SSA) is raising investment to fund its growth. The company expects to be sold to a larger auto parts manufacturer in four years for $20 million. You are considering investing $100,000 in SSA, and you want to earn 25% on your investment. The company has 5 million shares of stock outstanding. Given this, what is your current valuation for SSA? [PV]

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