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You invest $15,000 in Lin's Linens and received 1% of the company, expecting them to be sold in 5 years for $5 million. To your
You invest $15,000 in Lin's Linens and received 1% of the company, expecting them to be sold in 5 years for $5 million. To your surprise, they are purchased in 4 years for $4 million. How much do you receive when they are sold, and what is the rate return on your investment? You are considering investing $10,000 in a restaurant that promises to pay out to you $1000 at the end of two years, $1500 after three years, and then $15,000 at the end of year 4. If you want to make a 20% return on your investment, what is it's net present value to you? [ Select] a If you want to make a 20% return on your investment, is this a good investment? [ Select ] A A retail company, Clothes R Us, estimates its cost of debt at 6% and its cost of equity at 20%. The company has $15 million in debt and $50 million in equity. The company's effective tax rate is 20%. What is the company's weighted average cost of capital (WACC)? Shyam's Shams is raising $400,000 with a valuation of $4,000,000. What is the post-money valuation of Shyam's Shams? Using the post-money valuation, what % of the company do they need to sell to get their $400,000
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