Problem 17-14 Venture Capital Pricing (LO2, CFA4) Vista Venture Partners is considering an investment in a...

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Problem 17-14 Venture Capital Pricing (LO2, CFA4) Vista Venture Partners is considering an investment in a start-up firm that has developed a new technology for streaming data. If the venture is successful, Vista estimates it will be able to grow the business to an exit value of $250 million in five years. Vista has agreed to an initial investment of $9.0 million to fund the early-stage development. If Vista has a 20 percent required return, what ownership percentage will it demand in exchange for its investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Percentage of exit value % Problem 17-14 Venture Capital Pricing (LO2, CFA4) Vista Venture Partners is considering an investment in a start-up firm that has developed a new technology for streaming data. If the venture is successful, Vista estimates it will be able to grow the business to an exit value of $250 million in five years. Vista has agreed to an initial investment of $9.0 million to fund the early-stage development. If Vista has a 20 percent required return, what ownership percentage will it demand in exchange for its investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Percentage of exit value %