You have started a digital based fruit and vegetables business in your town and planning to expand in other cities. But for doing that you need additional capitals which could be obtained by selling part of your business to venture capitals or private angel investors. However, you know that to be able to do that you need to value your own business first. Therefore, you need
to estimate the number of shares of your business that would need to be put on sale to the investors.
Your current year profit before interest and taxes (EBIT) is IDR 1,5 billion from making annual sales of IDR 5 billion, which you expect to grow by an annual average of 20% for the next 5 years. You also know that you must pay taxes annual taxes at around 25%.
Furthermore, the weighted average cost of capitals (WACC) of your business is 12%,
depreciation of fixed assets is IDR 200 million every year. The business is also making constant investment of IDR 500 million.
