70.2K
Verified Solution
Link Copied!
Rev: $4,000
COGS: $1,500
1. Calculate Gross Profit
Operating Expenses:
SG & A : $1,900
Marketing: $400
Depreciation: $200
2. Calculate Net Income
Add back Depreciation
3. Calculate Cash Flow
4. Use a multiple of 4x to determine Valuation
5. Add Back $300 to COGS
6. Add Back $500 to SG & A
7. Calculate the Real Valuation of what CGC is actually worth
8. How much does the Bank
Your Valuation for Step 4 should be $600
The split of the Bank loan is 75%, your Fund is 25%
9. How much is your Fund responsible for investing?
10. How much is the Bank responsible for loaning?
The valuation for step 4 is $800 ($200 x 4) Do not attempt to do question 8
Answer & Explanation
Solved by verified expert
