Question
The financial projection of my appa in the next 5 years is as follows: Profit in year 5 = $10 Million P/E ratio = 54
The financial projection of my appa in the next 5 years is as follows:
Profit in year 5 = $10 Million
P/E ratio = 54 times
Discount rate = 20%
If a VC want to invest $2 Million today, what is the ownership fraction based on today valuation?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
