1. You have started a company and are in lucka venture capitalist has offered to invest. You...

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1. You have started a company and are in luck—a venture capitalist has offered to invest. You own 100% of the company with 5 million shares. The VC offers $1 million for 800,000 new shares.

a. What is the implied price per share?

b. What is the post-money valuation?

c. What fraction of the firm will you own after the investment?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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