Solved by Expert Tutors
Pak Budi has the opportunity to buy equity from a company of Rp \$ 3,000,000.
Solved by Expert Tutors
Question

# Pak Budi has the opportunity to buy equity from a company of Rp \$

3,000,000. Mr. Budi has \$ 1,500,000 to invest and a company investor who is willing to invest \$ 1,500,000 with an expectation rate of 25% per annum. Mr. Budi should assume the additional \$ 5,000,000 as a 5-year bank loan with interest of 12% per annum. This means an initial company value of \$ 7,000,000 consisting of \$ 4,000,000 and long-term bank loans
Equity capital of \$ 3,000,000. The firm's estimation method assumption and the multiples EBITDA or relative valuation model suggest a firm's exit value of \$ 12,000,000 based on EBITDA \$ 2,000,000 times 6.

a .How much ownership of the capital will Pak Budi give up the expected 25% annual rate to investors?
b . If the agreement is made according to Pak Budi's projection, what is the compound rate of return each year that Pak Budi will get over a period of 5 years?
c . Draw a Venture Valuation Pie that shows the company's current and future value and proportion of its equity holdings.

ec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat,

inia pulvinar tortor nec facil

, ultrices ac magna. Fusce d

llentesque dapibus efficitur laoreet. Nam risus ante, dapibus a

inia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie con

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tor

inia pulvinar tortor nec facil

llentesque dapibus efficitur

usce dui lectus, congue vel laoreet ac, dictum vi

, consectetur adipiscing elit. Nam laciniasuDonec aliquet. Lorem ipsum dolor sit amet, con

llentesque dapibus efficitur laoreet. Nam risus ante, dapibus a

uscs a molestie consequat, ultrices ac magna. Fusc

acinia pulvi

r

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents