Determine the value of a privately held

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1. Estimate the value of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $200,000; net income of a comparable firm = $40,000; number of shares outstanding of the comparable firm = 20,000; net income for the target firm - $15,000; number of shares outstanding for the target firm = 10,000

2. Based on the following information, estimate the percentage appreciation on stock bought by the venture investors: founders' purchase price $.50; venture investors' purchase price $2.00; current stock price = $10.00; founders holding period = 5 years; venture investors holding period = 3 years

 

Reference no: EM1360421

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