StEn is a bio-device start-up with a new medical device. The device has met FDA approval and ready to sell. StEn needs $15M immediately to invest in working capital and $5M in equipment to start shipping the new device. If they start shipping the new device, StEn expects $10M per year in annual FCF. Analysts estimate that StEn has a beta of 1.0. The market risk premium and risk-free rate are both 5%. StEns founder Lauren owns 90% of the share of StEn and Pinecrest Angel Group owns 10%. There are 1,000,000 shares outstanding. Please address the following: a. What is the value of StEns ticket stack? b. What is the price per share of StEns equity? c. What is StEns value add? d. The venture capital market is very, very competitive and StEn has a number of bidders seeking to provide capital. Suppose that Alpha Ventures is set to provide the $20M in exchange for a 20% stake in the company. That is, Alpha Ventures will receive new common shares amounting to 20% of the total number of common shares (i.e., the original 1,000,000 common shares plus the new common shares issued to Alpha). Upon receiving the $20M, StEn will purchase the assets required. i. What are StEns assets worth? ii. What is StEns value add? iii. What fraction of the tickets will Alpha ventures now own? iv. How many new shares must be issued to Alpha ventures in exchange for their investment? v. What is the price per share of StEn? Did the price change from your answer above? Why or why not?