Question: 1 WA-3 First Chicago Method; HIGHTEC, INC. 2. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc, Success Survival

1 WA-3 First Chicago Method; HIGHTEC, INC. 2. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc, Success Survival Sideways Failure 1. Revenue Growth rate from base of $ 5.00 million) 55% 25% 15% 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to fa 3. Revenue level after 5 years- IPO exit in the Success scenario 4. Revenue level after 7 years for the last survival scenario 10 5. After-tax profit margin and earnings at liquidity 60% 11 6. Price-eamings ratio at liquidity 127. Value of company at liquidity 13 8. Present value of company using discount rate of 35% 14 9. Probability of each scenario 0.35 15 10. Expeted present value of the company under each separate scenario 16 11. Expected present value of the company 12. Percentage ownership required in order to Invest $4.00 million 1 WA-3 First Chicago Method; HIGHTEC, INC. 2. Using the First Chicago Method and below data template, place a value(price) on HiTech Inc, Success Survival Sideways Failure 1. Revenue Growth rate from base of $ 5.00 million) 55% 25% 15% 2. Revenue level after 3 years; in the Failure scenario, the venture gets liquidated due to fa 3. Revenue level after 5 years- IPO exit in the Success scenario 4. Revenue level after 7 years for the last survival scenario 10 5. After-tax profit margin and earnings at liquidity 60% 11 6. Price-eamings ratio at liquidity 127. Value of company at liquidity 13 8. Present value of company using discount rate of 35% 14 9. Probability of each scenario 0.35 15 10. Expeted present value of the company under each separate scenario 16 11. Expected present value of the company 12. Percentage ownership required in order to Invest $4.00 million
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