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Business, 19.12.2021 14:00 zahraa244

A potential investor is willing to provide $1,500,000 in the first-round financing with the expectation of a 50% annual compound rate of return over the next five years. Founders currently hold 1,000,000 million shares of stock. The venture is expected to produce $500,000 in net income in year 5. A similar firm with an annual net income of $1,500,000 sold shares to the public for $10,000,000. What is the pre-money valuation?

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A potential investor is willing to provide $1,500,000 in the first-round financing with the expectat...
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