User Account

All Pages

What would be the pre-money and post money valuation

Assignment Help Financial Management
Reference no: EM131579374

The Company needs $5 million in capital. In your analysis, assume the valuation date is the end of year 5, projected earnings will in 5 years will be $20 million, and an appropriate price to earning ratio for valuing these earnings in 20 times. Assume that there are 500,000 shares outstanding. The required return for the investors is 50%.

a) What percentage ownership at times 0 should the investors demand for their $5 million dollar investment?

b) What would be the number of new shares issued?

c) What would be the pre-money and post money valuation?

Reference no: EM131579374

Questions Cloud

Draw the graph with the same vertex set and edge set : In the graph G of Figure 6.22, let M1 be the matching {l, 1}, {s, 2}, {t, 4}, {m, 5}, {e, 6}, {b, 9}, {f, 8}, and let M2 be the matching.
Explain the road not taken : Do not use the same poems you used previously for your initial post in weeks three and four.
What will be the net cash flow for year one of project : Your company has spent $240,000 on research to develop a new computer game. What will be the net cash flow for year one of this project?
How to use the financial information and tools learned : Students should understand how to use the financial information and tools learned in the class on a public company and obtain public company SEC reports.
What would be the pre-money and post money valuation : What percentage ownership at times 0 should the investors demand for their $5 million dollar investment? What would be the pre-money and post money valuation?
What documentary are you reviewing : What documentary are you reviewing?Was the topics covered in the film covered in a balanced way? How could it have been covered in a more fair way?
Determine the net effect of this plan on the pretax profits : Determine the net effect of this plan on the pretax profits of Bimbo. Assume there are 365 days per year.
Draw graph for sample job application data : Table shows a second sample of the kinds of applications a school district might get for its positions. Draw a graph as before and use it to help you decide.
Write a paper on physician assisted suicide : Question: Write a page and a half paper double spaced on physician assisted suicide using the following outline. How to qualify for physician assisted suicide

Reviews

Write a Review

Financial Management Questions & Answers

  Which furnace should si choose-annual maintenance costs

Springfield Ironworks (SI) recently had their furnace break down and they need to quickly purchase a new one to minimize the disruption in their production. They can either choose a high quality furnace (H) that costs $130,000 with $4,000 of annual m..

  First three years goes toward the repayment of principal

You have a 30-year mortgage with a simple annual interest rate of 8.5 percent. The monthly payment is $1,000. What percentage of your total payments over the first three years goes toward the repayment of principal?

  Difference in the payback and discounted payback of machine

A company is considering buying a machine that would give a net cost savings of $70,000 per year for 10 years. The cost of the machine is $325,000. The company's weighted average cost of capital is 12%. What is the difference in the payback and disco..

  Calculate depreciation tax shield for project in year

Your firm needs a computerized machine tool lathe which costs $47,000 and requires $11,700 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...

  How much loss would company recognize on income statement

Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?

  Exclude the income from the tax base

The income put in this account is not considered part of the individual's tax base.- It what ways is it desirable to exclude this income from the tax base? In what ways is it undesirable?

  Identify the web site the sender and perceived

find a web site that has an ldquoabout usrdquo section or a ldquopress releaserdquo section. write a three to four 3-4

  Integer linear programming model to assist park management

Formulate and solve an integer linear programming model to assist the park’s management to plan and schedule the number of new employees it hires each week in order to minimize the total number of new employees it must hire during the summer. It may ..

  What is the payoff on the option contracts

You purchased six put option contracts on Mitsubishi Industries. The strike price was $43.50 and the option premium was $1.50. On the expiration date, the stock was valued at $40.40 a share. What is the payoff on the option contracts?

  Indifferent between accepting project and rejecting it

At what discount rate would you be indifferent between accepting the project and rejecting it?

  Invest in portfolio containing stock

You have $100,000 to invest in a portfolio containing Stock X, Stock Y, and a risk free asset. how much money will you invest in Stock X?

  A firm has had the indicated earnings per share

A firm has had the indicated earnings per share over the last three years. If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.

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