Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio:

Comparable Companies	Ticker Symbol	Price/Sales
Starbucks	SBUX	4.95
Darden Restaurants	DRI	2.46
Yum Brands	YUM	6.15
McDonald's Corporation	MCD	8.37

Answer rating: 100% (QA)

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