15.2 A software firm is available for purchase, but it has experienced no growth for several years....
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15.2 A software firm is available for purchase, but it has experienced no growth for several years. The firm provides a cash return annually before taxes and owner’s salary of $100,000. It has annual sales of $1 million. As a purchaser of this firm, you select a discount rate of 14 percent. Calculate the price you would offer for the firm. Assume that you can increase and maintain a growth rate of sales and cash flow of 2 percent annually.
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Technology Ventures From Idea To Enterprise
ISBN: 9780073523422
3rh Edition
Authors: Thomas Byers, Richard C Dorf
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