--%>
Assignment Help - homework help

venture capital valuation method

venture capital valuation method a venture capitalist wants to estimate the value of a new venture. the venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at 1,600,000.00. A publicly traded competitor or comparable firm has current earnings of 1,000,000.00 and a market capitalization value of 10,000,000.00. estimate the value of the new venture at the end of year 5. show your answer using both the direct comparison method and the direct capitalization method. what assumption are you making when using the current price-to -earning relationship for the comparable firm?

   Related Questions in Financial Management

  • Q : Interest payments between

    Create a different arrangement of interest payments between the counterparties and the swap bank that yet leaves each counterparty along with an all-in cost 1/2 percent below each's best rate & the swap bank with a 1/4 percent inflow.Company

    		•
  • Q : Calculate rate of return on investment

    In May 1995, Japan Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds while the exchange rate was 80 yen per dollar. The company liquidated the investment one year afterwards for $10,650,000. The exchange rate turned out 110 yen per dollar

    		•
  • Q : Explain functional form of coefficient

    Explain functional form of coefficients in Monte Carlo method.

    		•
  • Q : Closed-end country funds trade at

    Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit

    		•
  • Q : European term bid-ask How you got to

    How you got to this result? One-Month 01-06 Three-Month 17-27 Six-Month 57-72

    		•
  • Q : Risks confronting an interest rate and

    Depict the risks confronting an interest rate & currency swap dealer.An interest rate & currency swap dealer confronts several distinct types of risk. Interest rate risk refers to interest rates altering unfavourably before the swap dea

    		•
  • Q : Preemptive right protect interests of

    Explain: a pre-emptive right protect the interests of existing stockholders.

    		•
  • Q : Explain Quants’ salaries through a

    Explain Quants’ salaries through a survey.

    		•
  • Q : Describe Foreign Exchange or FX Foreign

    Foreign Exchange (FX): It is the exchange of one currency for other or the transformation of one currency into another currency. Foreign exchange too refers to the global market where currencies are traded virtually all around-the-clock. The word fore

    		•
  • Q : What are the levels of implied

    What are the levels of implied volatility? Answer: Implied volatility levels the playing field so you can compare and contrast option prices across strikes and expir

    		•