Professional Documents
Culture Documents
EPS
NI
Common Stock
EPS
MV per share
50%
500,000,000
1,000,000
500
10,000
1
Net Income
DF
FV of Investment
MV of Share
Number of Shares
0.67x
3,796,875,000
10,000
379,688
0.44x
0.30x
500,000,000
0.20x
0.13x
10,000,000,000
3,796,875,000
37.97%
MV of share
379687.5
62.03%
612,091
1,612,091
816.872428
1a
IRR
NI in year 5
(A)
PE Ratio
(B)
(C)
EPS
(D) = (A)/(C)
(E) = (D)*(B)
Investment proposed
(F)
(G) = (F)*(1+IRR)^5
(H) = (C)*(E)
% ownership to be acquired
(I) = (G)/(H)
(K) = (I)/(J)*(C)
(L) = (F)/(K)
1b
IRR
Proposed Investment sought
FV of Investment Proposed in year 5
Total Market Value at end of year 5 (from 1a)
Number of Shares Outstanding
% ownership acquired (ownership to be given up)
(A)
(B) = (A)*(1+IRR)^5
(C)
(D)
(E) = (A)/(C)
(G) = (E)/(F)*(D)
(H) = (A)/(G)
Particulars
Investment Proposed
(A)
(B)
% of stock options
(C)
(F) = (F)/(B)*(G)
(H) = (A)/(F)
Particulars
Proposed Investment
IRR %
FV of investment by year 5
Total Market Value of venture in year 5
(A)
(B)
(C) = (A)*(1+(B))^5
(D)
(G) = (E)/(F)
Owned by others
(E) = (C)/(D)
(F) = 100%-15%-R2 inv
(I)
(J) = (G)/(H)*(I)
(K) = (A)/(J)
Particulars
Proposed Investment
(A)
IRR %
(B)
FV of investment by year 5
Total Market Value of venture in year 5
Final Ownership % in year 5
% of management shares reserved after round 1
Number of shares reserved for stock options
Retention % (after all further dilutions)
Number of Shares outstanding
Current Ownership %
(C) = (A)*(1+(B))^5
(D)
(E) = (C)/(D)
(F) = 15%/ (1-E)
(G) = (F)/(100%-F)*(I)
(H) = 100%-15%-R2 inv
(I)
(J) = (E)/(H)
Owned by others
(L) = (J)/(K)*(I)
(K) = (A)/(J)
Particulars
(A)
(B)
(D) = (B)/(100%-B)*(C)
(E)
(F) = (D)+(E)
Particulars
Current Ichiban's shares from 3a
Final Ownership % at end of year 7
Share of market Value of the venture
Expected IRR for Ichiban
Proposed Investment for Round 2 Inv
Required IRR for round 2 investors
FV of the investment for Round 2 Inv
Final Ownership % at end of year 7
Retention % for Ichiban
Current Ownership % for Ichiban
Solving for additional shares to be acquired
(G)
(H) = (G)/(F)
(I)
(J) = ((I)/500m)^(1/7)-1
(K)
(L))
(M) = (K)*(1+(L))^5
(N)
(O) = 100%-(N)
(P) = (H)/(O)
(Q) = ((G)+x)/((F)+x) = (P)
(T) = (R)+(C)+(D)
(U) = ((N)/(1-(N))*(T)
3d
Owners
Proposed Investment
Current Ownership as per 3c
100% ownership value as per Q2
FV of the Investment
IRR
Particulars
Proposed Investment as per 1a
Price of the Stock as per 1a
Number of shares as per 1a
Preferred Stock Dividend
Dividend per share
Total Dividend for year 1
Total Dividend for year 2
Total Dividend for year 3
Total Dividend for year 4
Total Dividend for year 5
Total Dividend for year 6
Total Dividend for year 7
Total Dividends for 7 years
Total preferred Stock value
Effective rate of return
Total FV of Investment
Total Dividend receivable
Ichiban's total investment
Firm's Total Value
Ichiban's share
(R)
(S) = 500m/(R)
Particulars
(V) = (K)/(U)
(A)
Ownership % needed
(B)
Dividend %
(C)
(D) = ((1+(C))^5
(E)
(F) = (D)*(E)
(G)
(H) = (F)+(G)
Effective ownership %
(I) = (F)/(H)
(J)
(K) = (J)*(I)
(J) = ((K)/(A))^(1/5)-1
Particulars
Proposed Investment by Ichiban
IRR
Expected FV of Investmemt
(A)
(B)
(C) = (A)*(1+(B))^5
(D)
Probability of Success
(E)
(F) = (D)*(E)
(G)
(H)
(I) = (F)+((G)*(H))
(J) = (I)*(1/(1+B))^5
(K) = (J)-(A)
50%
30%
500,000,000
500,000,000
20.0x
20.0x
1,000,000
1,000,000
500
500
10,000
10,000
500,000,000
500,000,000
3,796,875,000
1,856,465,000
10,000,000,000
10,000,000,000
37.97%
18.56%
62.03%
81.44%
612,091
227,968
1,612,091
816.9
2,193.3
241,814
1,370,277
50%
30%
1,200,000,000
1,200,000,000
9,112,500,000
4,455,516,000
10,000,000,000
10,000,000,000
1,000,000
1,000,000
91.13%
44.56%
8.88%
55.44%
10,267,606
803,594
116.87
1,493.3
Keiko Ichiban
500,000,000
1,000,000
15%
85%
37.97%
44.67%
55.33%
807,309
619.34
Keiko Ichiban
Round 2 Inv.
500,000,000
300,000,000
50.0%
30.0%
3,796,875,000
659,100,000
10,000,000,000
10,000,000,000
37.97%
6.59%
78.41%
85.00%
48.42%
7.75%
51.58%
92.25%
1,000,000
1,938,885
938,885
162,981
532.5
1,840.7
Keiko Ichiban
Round 2 Inv.
500,000,000
300,000,000
50.0%
30.0%
3,796,875,000
659,100,000
10,000,000,000
10,000,000,000
37.97%
6.59%
27.06%
27.06%
24.18%
370,918
78.41%
100.00%
1,000,000
2,309,803
48.42%
6.59%
51.58%
93.41%
938,885
162,981
532.5
1,840.7
Ichiban
Round 2
15.0%
37.97%
0
6.59%
27.06%
51.6%
1,000,000
370,918
1,938,885
2,309,803
Ichiban
Round 2
938,885
938,885
40.65%
4,064,784,978
34.90%
300,000,000
51.6%
30.0%
1,113,879,000
11.14%
88.9%
45.7%
216,912
17,301,835
1,155,797
432.6
2,526,714.5
316,725
947.2
1,056,575
117,690
54.256925176993200%
216911.7527
Ichiban
0
#REF!
2,309,803
#REF!
51.6%
7 year IPO
5 year IPO
500,000,000
500,000,000
816.9
2,193.3
612,091
227,968
1.61051
10.0%
10.0%
612,091
81.7
219.3
985778.1612
50,000,000
50,000,000
1,000,000
55,000,000
55,000,000
1,985,778
60,500,000
60,500,000
49.64%
66,550,000
66,550,000
73,205,000
73,205,000
80,525,500
88,578,050
474,358,550
305,255,000
974,358,550
805,255,000
13.6%
12.2%
370,918
3,796,875,000
474,358,550
305,255,000
474,729,468
4,102,130,000
10,000,000,000
10,000,000,000
4.7%
41.0%
5 year IPO
500,000,000
37.97%
10%
1.61
612,091
985,778
1,000,000
1,985,778
49.64%
10,000,000,000
4,964,190,766
58.26%
Takashi Ven
Kotobuki
500,000,000
500,000,000
30.0%
30.0%
1,856,465,000
1,856,465,000
10,000,000,000
10,000,000,000
50%
60%
5,000,000,000
6,000,000,000
4,000,000,000
50%
40%
7,000,000,000
6,000,000,000
1,885,303,520
1,615,974,446
1,385,303,520
1,115,974,446
0.269329074
10,000,000,000
7,298
520,277
32.27%
15%
47.27%
52.73%