Vc invests 4 million in company z the vc requires an irr of


VC invests $4 million in company Z. The VC requires an IRR of 40%. Similar public companies sell at P/E of 30. The VC expects to harvest the company in 6 years when its earnings after tax are expected to be $5 million. How much will the VC’s ownership be?

VC ownership is calculated using the Venture Capital method.

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Financial Management: Vc invests 4 million in company z the vc requires an irr of
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