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. . . . this part QUESTION 3 You are given the following information: Baseline (last year or year O) sales S15.00 million Sales growth

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. . . . this part QUESTION 3 You are given the following information: Baseline (last year or year O) sales S15.00 million Sales growth rate for years 1-5: 40% Sales growth rate for years 6-10: 30% Sales growth rate for years 11-on: 10% Profit margin for years 1-10: 20% Profit margin for years 11-on: 8% Discount rate or cost of capital: 25% during years 1-10; and 14% for years 11-on. Answer the following questions: A. What is the value of this company using the Fundamental Method of valuation (30 points for B. For $15 million investment what% of the company should be given up by the entrepreneur? (5) points for this part) c. If you were an advisor to the entrepreneur on this venture deal what type(s) of advice would you provide to your client- the entrepreneur- ? Outline your thought process, including any assumptions, in this regard. (15 points for this part.) Lise Excel for this question. Total Points given: 50. QUESTION 4 Part A First outline all the KEY VARIABLE and FACTORS that determine valuation and valuation analysis of entrepreneurial ventures and ONLY then explain in needed details all such KEY VARIABLE and FACTORS that you just listed. He specific in your response. 20 points for this part) Part B.In clear term explain why knowledge of valuation is vital in entrepreneurial finance. In your response, make sure to answer the question from the point of view of (15 points for this part 1. Entrepreneurs 2. Investors 3. Future Team Members in a venture Partc What are the most important things that you can do for a venture in order to get the odds of success in your favor lixplain (15 points for this part) Note: Points will be taken off for responses that lack organization and order Maximum pages allowed for this question: 2-3. double-spaced, size 12 Total Points given: 50

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