Simple Multiplier Method: Income Statement = Net Income Earnings per Share Quarter 1 Quarter 2 Quarter 3 Quarter 4 -288,500 -172,926 -344,191 -2,567,356 Common Stock Common Stock -19 1. Q6 EPS = $41 2. Multiplier of 7 3. $41 * 7 = $287 4. Stock Shares = 15,000 + 5,000 + 5,000 + 25,000 = 50,000 Shares -9 3) 1.87*100 = 187% ROI Stock History Stock Type Shares Price Per Share Name of Owner Common Stock Executive Team 15,000 100 Common Stock Executive Team 5,000 100 Executive Team 5,000 Venture Capitalists 25,000 Totals: 50,000 -14 -51 5. $287 * 50,000 = $14,350,000 Utilizing the above figure, we can now calculate the Return on Investment (ROI.) 1) $14,350,000 - $5,000,000 = $9,350,000 2) $9,350,000/ $5,000,000 = 1.87 Quarter 5 Quarter 6 92,394 2,035,145 2 Total Amount Quarter 1,500,000 500,000 100 500,000 100 2,500,000 1 2 3 34 41