TradeDepot Ltd is a private startup in the Trade industry. The firm has no debt and does
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TradeDepot Ltd is a private startup in the Trade industry. The firm has no debt and does not have any earnings yet, but wants to raise $120 million from a venture capitalist (VC). The firm is expected to go public in 8 years, with expected earnings of $21 million. The average price-earnings ratio of other firms in this industry is 41. If the VC has a target rate of return of 28%, what is the current estimated value of the firm (in $ million)?
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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