Question
The exit value of portfolio firm is $70M with 30% probability of failure. The target multiple for a VC is 7. If VC is expected
The exit value of portfolio firm is $70M with 30% probability of failure. The target multiple for a VC is 7. If VC is expected to own 10% of the portfolio firm at exit, what is the partial valuation to VC today?
Group of answer choices
A $1M
$2M
C $3M
D $4M
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
