Company using the fundamental method of valuation

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Reference no: EM131852066

High rated expert please answer this in excel please?

You are given the following information:

Baseline (last year or year 1) sales: $12.00 million

Sales growth rate for years 1-7: 45%

Sales growth rate for years 8-10: 25%

Sales growth rate for years 11-on: 8%

Profit margin for years 1-10: 35%

Profit margin for years 11-on: 18%

Discount rate or cost of capital: 30% during years 1-10; and 12% for years 11-on.

Answer the following questions:

What is the value of this company using the Fundamental Method of valuation?

For $3.0 million investment, what portion of the company should be given up?

Assume you are a financial consultant to the entrepreneur, and this entrepreneur has asked you to advise her regarding the $3.0 million financing. How will you go about advising your client? Outline your thought process in this regard.

Reference no: EM131852066

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