If an investor offers you 500000 for 70 of the business


Assume you own 100% of a small business. Your forecast shows that net income will be $450,000 in five years. You expect that the company will be valued using a PE of 15 five years from now.

If an investor offers you $500,000 for 70% of the business, what would be the investor's return?

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Finance Basics: If an investor offers you 500000 for 70 of the business
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