A venture capitalist invests in a company by means of buying:
* 9million shares for$2 a share and
* 8% bonds with anominalvalue of $2 million, repayableat par in 3 years' time.
The venture capitalist expects a return on the equity portion of the investment of at least 20% a year on a compound basis over the first 3 years of the investment.
The company has 10 million shares in issue.
What is the minimum total equity value for the company in 3 years' time required to satisify the venture capitalist's expected return?
Give your answer to the nearest$million.
$ million.
A company is based in Country Y whosefunctionalcurrency isY$. It has an investment in CountryZwhosefunctionalcurrency isZ$.
This year the company expects to generateZ$10 million profit after tax.
Tax Regime:
* Corporate income taxrate in country Yis 50%
* Corporate income tax rate in country Z is 20%
* Full double tax relief is available
Assume an exchange rate ofY$1 = Z$ 5.
What is the expected profit after tax in Y$ if the Z$ profit is remitted to Country Y?
A major energy company, GDE, generates and distributes electricity in country
A venture capitalist invests in a company by means of buying:
* 9million shares for$2 a share and
* 8% bonds with anominalvalue of $2 million, repayableat par in 3 years' time.
The venture capitalist expects a return on the equity portion of the investment of at least 20% a year on a compound basis over the first 3 years of the investment.
The company has 10 million shares in issue.
What is the minimum total equity value for the company in 3 years' time required to satisify the venture capitalist's expected return?
Give your answer to the nearest$million.
$ million.
Company AB was established 6 years ago by two individuals who each own 50% of the shares.
Each individual heads a separate division within the company, which now has annual turnover of GBP10 million and employs 40 people.
Some of the employees are very highly paid as they are important contributors to the company's profitability.
The owners of the company wish to realise the full value of their investment within the next 12 months.
Which TWO of the following options are mostlikely to be acceptable exit strategies to the two owners of the company?
