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10. AppCo is an early stage company whose financial plans call for the company to be sold in 4 years, at a valuation of $50
10. AppCo is an early stage company whose financial plans call for the company to be sold in 4 years, at a valuation of $50 million. You are considering an investment of $100,000 in Appco; you like the company but feel that it is a somewhat risky venture, so you want a 35% annual return on your investment. What % of the company would you expect to receive for your $100,000? (Use the pre- money value for this problem) b. if there are 1,000,000 shares of StartCo already outstanding, out of 50 million shares authorized, how many shares will you be purchasing, and at what price? (Use pre- money valuation here) a
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