User Account

All Pages

How much money should you ask from a venture

Assignment Help Finance Basics
Reference no: EM132375631

A venture capital firm wants to invest in your venture called "COMM387.com" that you started 4 years ago. For COMM387.com, the venture capital firm is using a target annual compound rate of return of 35%. You expect to sell COMM387.com for $10 million in 6 years and you own 100,000 shares now.

1. How much money should you ask from a venture capital firm in exchange for 60% ownership stake in your company?

2. What is the share price of COMM387.com at which the venture capital firm will be buying shares in this case?

Reference no: EM132375631

Questions Cloud

Why you agree or disagree with aristotle : According to Aristotle, women have inferior natures and therefore are best suited to specific roles in the family and society. This is not simply a matter.
Why does retail and food services push interest rates : Why does retail and food services push interest rates up when it's trend line is going up.
Positive covariances of returns : Why do most assets of the same type show positive covariances of returns with each other? Would you expect positive covariances
Why issues easily find the way onto decision makers agendas : Some issues receive significant attention from decision makers. Why might these issues easily find their way onto decision makers' agendas?
How much money should you ask from a venture : 1. How much money should you ask from a venture capital firm in exchange for 60% ownership stake in your company?
What is the economic value : What is the economic value at t = 0 of the free cash flows LumiereBeauty is expected to produce during the growth period?
Have you used empowerment strategies in moving group forward : Reflect on your participation in the dynamics. What role have you assumed in the group? Have you used any empowerment strategies in moving the group forward?
What is fisher doing differently than what you did : Is this truly Fisher's approximate real interest rate that you calculated? If not, what is Fisher doing differently than what you did?
Explain how the group dynamics may influence treatment : When working with families and groups the priority is for the social worker to understand the process that is taking place. In both situations there.

Reviews

Write a Review

Finance Basics Questions & Answers

  What should lee and marta include in a letter of instruction

What should Lee and Marta include in a letter of last instructions? How might the Howards use trusts to benefit their grandchildren?

  How large of an increase in fixed assets will company need

What level of sales could Seattle Coffee have obtained if it had been operating at full capacity? Round your answer to the nearest cent.

  What are the roles of mission and vision statements

What are the roles of mission and vision statements in strategic management? Can an organization have a successful strategic plan without effective mission.

  What are the magnitude and direction of the force

What are the magnitude and direction of the force necessary to hold the nozzle to the pipe?

  How could taxes be lessened

Discuss the taxation of one of the following: S Corp, C Corp, PSC, Sole Proprietor,LLP. Provide an advantage OR disadvantage. How could taxes be lessened?

  Prepare a reformulated statement of comprehensive income

Reformulation of a Balance Sheet, Income Statement, and Statement of Shareholders' Equity (Medium) The following financial statements were reported.

  What are the tax consequences in given years

Investor owns 1,000,000 shares of stock of Corp. XYZ with a zero basis and a FMV of 100,000,000 that the investor has held for 20 years.

  What are ebit under the best case scenario

The estimated sales price is $80 a unit, plus or minus 4 percent. Variable costs are estimated at $55 a unit, plus or minus 5 percent, and the fixed costs are $25,000, plus or minus $25,000. What are EBIT under the best case scenario?

  What is its new target variable cost

Assume that Snow Castles has found ways to cut its fixed costs to $31 million. What is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skier/ snowboarder. Comment on your results.

  How the costing technique effects the income statement

Comment on that how the costing technique effects the income statement and balance sheet of that company. Also comment on the effectiveness of each method.

  What is the companys cost of equity capital

The Tubby Ball Corporation’s common stock has a beta of 1.05. If the risk-free rate is 5.3 percent and the expected return on the market is 12 percent, what is the company’s cost of equity capital?

  How will this change in policy affect accounts receivable

Essence of Skunk is considering a change in its credit policy to terms of 3/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

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