Question: 4. Using the following information, please answer the questions about Surelock Homes, a startup company. In your analysis, assume the valuation date is the end

4. Using the following information, please answer the questions about Surelock Homes, a startup company. In your analysis, assume the valuation date is the end of year 6 , projected earnings in year 6 will be $12 million, and an appropriate price-to-earnings ratio for valuing these earnings is 20 times. In addition, the company wants to reserve 15 percent of the shares outstanding at time 6 for employee bonuses and options. a. What percentage ownership at time 0 should round 1 investors demand for their $6 million investment? b. If Surelock presently has 1 million shares outstanding, how many shares should round 1 investors demand at time 0 ? c. What is the implied price per share of Surelock stock at time 0? d. What is Surelock's pre-money value at time 0? What is its post-money

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Using the following information, please answer the questions about Surelock Homes, a startup company. In your analysis, assume the valuation date is the end of year 6, projected earnings in year 6...

14. Using the following information, please answer the questions about Surelock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6 , projected earnings in...

Using the following information, please answer the questions about Surelock Homes, a startup company. In your analysis, assume the valuation date is the end of year 6, projected earnings in year 6...

Using the following information, please answer the questions about Sure lock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6, projected earnings in year 6...

Using the information below, please answer the following questions below about Surelock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6, projected earnings...

10. Using the information below, please answer the following questions below about Surelock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6, projected...

=10. Using the information below, please answer the following questions below about Surelock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6, projected...

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

please answer all questions. please create an excutive summary as well. please answer all questions Part 3: Long-Term Working Capital Considerations: CAPM, Stock Valuation, and Project Evaluation...

I need step by step solutions for the questions that that requires calculations. i already have the answers but seeing how the calculations are done will help me to understand the material much...

Is there a relationship between market share and profit? What could account for this relationship?

Let be a nonzero elgenvalue of A and let x be an eigenvector belonging to . Show that Amx is also an eigenvector belonging to form = 1,2,....

Please use Applied Materials 2 0 1 3 1 0 K to answer the following questions ( you can find the document on google, it's the first one that comes up ) : 1 . What is the accounts receivable allowance...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".