A VC proposes to invest $150,000 today in the company Horizon The VC expects to exit the investiment in 4 years The VC required return (IRR) is 70% p. a. Horizon expected EBITDA in 5 years $200,000 and it is expected to sell for 10 times EBITDA; What % share of the Company today would the VC want in exchange for the initial investment?

Teatro restoration, inc., begins renovating an old theater for urban edge productions, but after three months teatro demands an extra $250,000. urban edge agrees to pay. refer to fact pattern 13–4. if teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is