Question: Please use Excel to answer this question Question 7 [Total of 10 points] You've been hired as a consultant to value a startup firm. After
Question 7 [Total of 10 points] You've been hired as a consultant to value a startup firm. After carrying out discounted cash flow and multiple analysis you determine that the enterprise value (EV) of the firm is $342mil. The firm has $112mil in debt, $24mil in cash, and 41mil shares outstanding. The firm is looking to raise new equity capital and is currently in negotiations with a potential investor. The investor has stated that she would like to purchase 23% of the firm. Part 1 [4 points] If the new investor were to purchase 10mil shares at a price of $7.2 per what are the pre- and postmoney valuations of the firm? Report here final values (2 digits of significance) and have complete calculations in your spreadsheet. Part 2 [ 6 points] How many new shares does the firm need to give the investor and what price does the investor need to pay for each share for the deal to be fair? Report here final values ( 2 digits of significance) and have complete calculations in your spreadsheet
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