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MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
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Company X is expected to have earnings of 100 in beginning of the 10th year - this is when it begins its earnings. The industry the company is in is expected to have a P/E ratio of 18 in 10 years.
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What is the value of the firm today? Use a discount rate of 50%
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How much would a 25% share of this company cost today? (This is called the venture capital method)
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