Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13. Anderson started his own business in his parents garage. He threw in $5,000 of his own and was able to raise 3 rounds of

13. Anderson started his own business in his parents garage. He threw in $5,000 of his own and was able to raise 3 rounds of financing afterwards: his parents, an angel investor, and a VC firm. Fill in the blank cells (marked by Roman letters) in the following table with the number you calculate in each round of financing. If you think there is not enough information to fill a specific cell, mark N/A in the cell. Show steps of calculation for each cell.

Round

Investor

$invested

Total #shares

Firm value

Price per share

Andersons ownership

1

Anderson

$5,000

1,000

(i)

(ii)

100%

2

Parents

$2,500

(iii)

(iv)

(v)

80%

3

Angel

(vi)

2,000

(vii)

$30

(viii)

4

VC

(ix)

(x)

$240,000

(xi)

25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding financial statements

Authors: Lyn M. Fraser, Aileen Ormiston

9th Edition

136086241, 978-0136086246

More Books

Students also viewed these Finance questions