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Unformatted text preview: VC Rate of Return 25.0% VC's Share 24.6% c. What share of the firm's equity will the VC require? Estimated EBITDA EBITDA 2005 5,000,000 Estimated EBITDA 2010 18,564,650 Multiple 5 Enterprise Value $92,823,250 Less: Debt $(5,800,000) Equity Value in 2010 $87,023,250 VC's share 15.96% a. What is the value of the combined firm in five years? b. What share of the firm's equity will the VC require? Solved for using Goal Seek such the desired 25% return. on Legend blem on/Analysis required is or Short answer required er cell t that the VC realizes...
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- Summer '09