Suppose startup QuickFood proposes a new business model for delivering food in suburban areas. The business model includes fast revenue growth through entry into new cities. The company hopes to be worth $500 million in 5 years. A reasonable discount rate for the food delivery sector based on public comparables is 12%. How much is this company worth today (please round to closest unit)? -60 -284 -446 -313 -300

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 6P
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Suppose startup QuickFood proposes a new business model for delivering food in suburban areas. The business model includes fast revenue growth through entry into new cities. The company hopes to be worth $500 million in 5 years. A reasonable discount rate for the food delivery sector based on public comparables is 12%. How much is this company worth today (please round to closest unit)?

-60

-284

-446

-313

-300

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