The Venture Capital Method - Valuation Problem Set Question 1. Roger Harkel, CEO of Bestafer Inc., sought to raise $5 million in a private placement of equity in his early-stage dairy products company. Harkel conservatively projected net income of $5 million in year five and knew that comparable companies traded at a price-earnings ratio of 20X. a. What share of the company would a venture capitalist require today if her required rate of return was 50%? What if her required rate of return was only 30%