Question: You have a groundbreaking idea to develop a new technology that would change the world. You have approached a venture capitalist, asking for a $100

You have a groundbreaking idea to develop a new technology that would change the world. You have approached a venture capitalist, asking for a $100 million investment in your company. You believe that the initial $100 million investment to generate $40 million annual free cash flows indefinitely. The discount rate is 15%. If the venture capitalist agrees to give you the $100 million in exchange for a 40% ownership share in the company. What is the company's "after the-money" valuation (valuation made by the VC in exchange for 40% ownership)? $222.22mil $266.67 mil. 5666.67mil. $250mil. $200mil

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