Question: Given the following information, and using the VC method of valuation, Required ROR by investor(s): 35% Net income in four years: $ 3.2 m Expected
Given the following information, and using the VC method of valuation,
Required ROR by investor(s): 35%
Net income in four years: $ 3.2 m
Expected P/E ratio in four years: 14 times.
Determine the % of the company that needs to be given up for $1.5 m investment.
Step by Step Solution
★★★★★
3.42 Rating (158 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
The valuation using the VC method is given by the formu... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
