# Private Company Valuation and Net Income State Worksheet

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 1. If you invest \$ 5,000,000 at 10,000,000 pre-money valuation, What percentage would you want to own after the investment? Why? Show your formulas and calculations. a. 33% b. 50% c. nothing because she is my friend d. 30% The formula for net cash flow to invested capital can be calculated as: (Highlight your answer) a. Net income after tax, plus non-cash charges, less capital expenditures, less additions to net working capital for operations, plus interest expense (tax-affected) b. Net income before tax, plus non-cash charges, less capital expenditures, less additions to net working capital for operations, less interest expense (tax-affected) c. Net income after tax, plus non-cash charges, less capital expenditures, less additions to net working capital for operations, less interest expense (tax-affected) d. Net income after tax, plus non-cash charges, plus capital expenditures, plus additions to net working capital for operations, less interest expense (tax-affected)

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Private Company Valuation

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For those questions where you are asked to comment, write the formulas and explain your results.

1. If you invest \$ 5.000.000
at
a. 33%
b. 50%
c. nothing because she is my friend
d. 30%

10.000.000 pre-money valuation, What percentage would you want t

0,33333

Pre-money valuation is before investment and hence the total amount will be sum of investor's money an
total = (\$5,000,000 + \$10,000,000) = \$15,000,000
Share = (\$5,000,000 / \$15,000,000) x 100% = 33.33%

The formula for net cash flow to invested capital can be calculated as: (Highlight your answer)
a. Net income after tax, plus non-cash charges, less capital expenditures, less additions to net working capital for o
b. Net income before tax, plus non-cash charges, less capital expenditures, less additions to net working capital for
c. Net income after tax, plus non-cash charges, less capital expenditures, less additions to net working capital for o
d. Net income after tax, plus non-cash charges, plus capital expenditures, plus additions to net working capital for o

rcentage would you want to own after the investment? Why?

e sum of investor's money and entrepreneurs money.
\$15,000,000
100% = 33.33%

to net working capital for operatio...

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