Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Inc. is seeking an investment of $43,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the

XYZ Inc. is seeking an investment of $43,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $327,000 6 years from now. Because of the risk, you will only invest if you can generate of return of 11% per year on your investment.

The founders want to have 100,000 shares of the company.

What is the post-money valuation of the company?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unlock The Potential Of Forex An Essential Guide To Forex Trading

Authors: Enoch Grennan

1st Edition

979-8388679659

More Books

Students also viewed these Finance questions