Solved by verified expert :Value given in problem
Formula/Calculation/Analysis required
Qualitative analysis or Short answer
2013 Investment
$ 105,000,000
2013 Investor’s Ownership
10%
2014 Revenue
$ 58,000,000
Revenue annual growth
24%
Price / Revenue ratio
16
What
is the estimated 2018 value of GE’s share in Pivotal?
2018 estimated
revenue
2018 Value
2018 value of investor’s
share
What
is GE’s implied cost of capital that justified $ 105 M investment?
Implied Cost of Capital
How
will your answers change if the annual growth were only 20%?
Revenue annual growth
20%
2018 estimated
revenue
2018 Value
2018 value of investor’s
share
Implied Cost of Capital
What
is the advantage of having convertible preferred instead of common equity?
