Heather Evens Case Study Essay

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4. Evaluate Heather’s financing alternatives - Arden & Co. ·A private investment company with excellent reputation ·Intend to do the whole deal ·Heather’s friend worked for this company, so it was easy to approach ·There was still no formal discussion on this deal when the holiday line was beginning - Other venture capital firms ·An opportunity to collect money as under an emergency ·It would take a lot of time to talk with unfamiliar company from a fresh start ·It might a hard bargain than private investors - Helen Neil ·A small venture capital firm which had been approached ·The owner was a proven designer, so she is familiar with garment industry ·This company had relationships with …show more content…

of only 20% for the additional 4 years
* Use a total operating expenses growth rate of 10% p.a.
* Use the COGS number at roughly 54.5% of sales
* Use a 35% corporate tax rate

$ 250,000 (1.60)5 = ROI = 2,621,440

ROI = % of company investors would own P/E multiple × Year Team’s own Perform net income

2,621,440 = 53.6% 9.60 × 508,992

So, % of company investors would own = 53.6% And, % of

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