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Ownership fraction based on today valuation

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Reference no: EM133112112

The financial projection of my appa in the next 5 years is as follows:

Profit in year 5 = $10 Million

P/E ratio = 54 times

Discount rate = 20%

If a VC want to invest $2 Million today, what is the ownership fraction based on today valuation?

Reference no: EM133112112

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