User Account

All Pages

Determine the value the start-up company

Assignment Help Finance Basics
Reference no: EM132075388

You are asked to value a small start-up company that is expected to generate a (negative) cash flow of - $10 million next year, and - $5 million in the following year (year 2), before the firm turns profitable in year 3. Its first positive cash flow (in year 3) is equal to $2 million, and cash flows are expected to grow at a rate of 20% per year for 7 years (until year 10). After year 10, the growth rate drops to 5% indefinitely. Determine the value the start-up company if the relevant discount rate is equal to 8%.

Reference no: EM132075388

Questions Cloud

Effect on country currency rates : What is a best practice you have found useful in managing your personal credit, How is goodwill derived from a merger and acquisition transaction
How much synergy was allocated to the chelsea shareholders : If the current Mizumo shareholders obtain $10,700 of equity in the new firm, how much synergy was allocated to the Chelsea shareholders?
List any public health agencies or organizations : MPH Field Experience Interest Form - Argosy university - College of Health Sciences - List any public health agencies or organizations
What is the initial cost of the plant if the company : The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?
Determine the value the start-up company : After year 10, the growth rate drops to 5% indefinitely. Determine the value the start-up company if the relevant discount rate is equal to 8%.
What is the value of the utility : If the relevant discount rate is 12.5%, what is the value of the utility? And what would be the value if you assumed that the cash flows after year 5 would.
Discuss about the strategic marketing plan : Assume that you have been hired as VP of Strategic Marketing for Seventh Generations. You have been asked to develop the new strategic marketing direction.
What is profit per share at expiration : What is your profit per share at expiration from the covered call position if Apple is selling for $225?
Is fraud and abuse a financial problem for providers : Is fraud and abuse a financial problem for providers, insurers, patients, or all of the above? How does it affect these categories of stakeholders?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd