A venture capital company buys 400,000 shares of a start-ups stock for $5 million. If the company

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A venture capital company buys 400,000 shares of a start-up’s stock for $5 million. If the company has 1.6 million shares outstanding prior to the purchase, what is the company’s pre-money value? What is its post-money value?

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Analysis for Financial Management

ISBN: 978-0077861780

11th edition

Authors: Robert Higgins

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Question Posted: Nov 28, 2015 07:38 AM

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A venture capital company buys 400,000 shares of a start-ups stock for $5 million. If the company

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Price per share 5 million400000 shares 1250 p...View the full answer

Analysis for Financial Management

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