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You are an inventor with a great business idea but no money. You have approached a venture capitalist (VC), asking for a $100 million investment

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You are an inventor with a great business idea but no money. You have approached a venture capitalist (VC), asking for a $100 million investment in your company. You explain that you expect the initial $100 million investment to earn a 40% annual rate of return forever. You plan to reinvest all of the project's earnings in Years 1 and 2, and you expect that these additional investments will also earn a 40% annual rate of return forever. After Year 2. you plan to invest no more in the company, except to maintain assets, so your company's annual earnings should remain constant forever from Year 3 onward. The appropriate discount rate for your business is 25M. If the capital market were perfectly effident, what ownership share in the company should the VC receive in exchange for the $100mil investment? In other words, what would be the ownership percentage VC should require If market is efficient? (Write the answer in percentage term with two decimal points le., 10.25%, and bold the answer so that it is easier to see which one is your answer)

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