Question
Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from
Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio:
Comparable Companies | Ticker Symbol | Price/Sales |
Starbucks | SBUX | 4.95 |
Darden Restaurants | DRI | 2.46 |
Yum Brands | YUM | 6.15 |
McDonald's Corporation | MCD | 8.37 |
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
