Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Inc. is seeking an investment of $68,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the

XYZ Inc. is seeking an investment of $68,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $331,000 5 years from now. Because of the risk, you will only invest if you can generate of return of 15% per year on your investment. The founders want to have 100,000 shares of the company. What is the PRE-money valuation of the company? Round your answer to the nearest whole number, for example 50501.

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

Bitcoin A Game Theoretic Analysis

Authors: Micah Warren

1st Edition

3110772833, 978-3110772838

More Books

Students also viewed these Finance questions

Question

=+ In washing machines?

Answered: 1 week ago