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|WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc. Grade; 20 Points; Submit
|WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc. Grade; 20 Points; Submit by 11:50 PM; Sunday, Oct 6 Survival Sideways Success Failure 1. Revenue Growth rate (from base of $ 5.00million 55% 25% 15% 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to failire 3. Revenue level after 5 years- lPO exit in the Success scenario 4. Revenue level after 7 years for the last survival scenario 5. After-tax profit margin and earnings at liquidity 60% 15% NA 6. Price-earnings ratio at liquidity 35 NA 7. Value of company at liquidity 8 Present value of company using discount rate of 35% 9. Probability of each scenario 0.45 0.35 0.2 10. Expeted present value of the company under each separate scenario 11. Expected present value of the company 12. Percentage ownership required in order to invest $4.00 million |WA-3 First Chicago Method; HIGHTEC, INC. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc. Grade; 20 Points; Submit by 11:50 PM; Sunday, Oct 6 Survival Sideways Success Failure 1. Revenue Growth rate (from base of $ 5.00million 55% 25% 15% 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to failire 3. Revenue level after 5 years- lPO exit in the Success scenario 4. Revenue level after 7 years for the last survival scenario 5. After-tax profit margin and earnings at liquidity 60% 15% NA 6. Price-earnings ratio at liquidity 35 NA 7. Value of company at liquidity 8 Present value of company using discount rate of 35% 9. Probability of each scenario 0.45 0.35 0.2 10. Expeted present value of the company under each separate scenario 11. Expected present value of the company 12. Percentage ownership required in order to invest $4.00 million
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