Characteristics of standard venture capital recipient

Assignment Help Financial Management

Reference no: EM131607756

Does company have a strong proposal? addressed the question about the management team raised in the last chapter 2. determine the value of the company in 20017 and the value today assuming a 30% discount rate. What is the value if the rate is 40%? What share of the company would an investor get for a $1,000,000 investment? Assume a market multiple of 8 to establish the value in 2017. How does this valuation compare to the valuation you performed in the last chapter using (DCF)? (Page-190 from the link provided) VC’s share =Investment /Present Value Terminal value = year 5 net income x market multiple 3. If company N has 1,000,000 shares outstanding, how many shares will an investor get for the $1,000,000 investment? What stock price is reflected in this valuation? 4. If an investor receives a 30% share of the company for $1,000,000 investment and accountant's projections hold true, what return on investment will that investor earn? Is that sufficient? At what stage is the company at this time? 5. Does company have the characteristics of a standard venture capital recipient?

Reference no: EM131607756

Questions Cloud

Retirement programs were defined-benefit plans : Before the mid-1970s, most retirement programs were Defined-Benefit plan. What are employees’ responsibilities regarding Defined-Contribution and 401(k) Plans?

What is your expected rate of return : Alyward and Bram common stock currently sells for $ 23.50 per share. What is your expected rate of return?

Difference between direct rate and an indirect rate : What is the difference between a spot rate and a forward rate? What is the difference between a direct rate and an indirect rate?

Total marketing program for the orthopedic group : Explain the integration of the strategy into a total marketing program for the orthopedic group?

Characteristics of standard venture capital recipient : Does company have the characteristics of a standard venture capital recipient?

What would be your monthly payment : If you want a 30-year mortgage, and the borrowing rate is 8 6% APR, what would be your monthly payment?

Proponents of tax simplification argue : Proponents of tax simplification argue that a flat tax would be fairer.

Expects earnings before interest and taxes : Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2.5 million. what is its enterprise value?

At what price should the bonds sell : Randall, inc. is planning to issue bonds that will have mature in 25 years. At what price should the bonds sell?

User Account

All Pages