Question
XYZ Inc. is seeking an investment of $69,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of
XYZ Inc. is seeking an investment of $69,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $347,000 4 years from now. Because of the risk, you will only invest if you can generate of return of 12% 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? Round your answer to the nearest whole number, for example 50501.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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