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3) You founded your own firm two years ago. You initially contributed $150,000 of your money and, in return received 2,500,000 shares of stock. Since

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3) You founded your own firm two years ago. You initially contributed $150,000 of your money and, in return received 2,500,000 shares of stock. Since then, you have sold an additional 1,000,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist (VC). This VC would invest $10 million and would receive 2.5 million newly issued shares. What is the post- money valuation? Assuming that this is the VC's first investment in your company, what percentage of the firm will she end up owning? What percentage will you own? What is the value of your shares? 4) Fleming Educational Software, Inc., is selling 775,000 shares of stock in an auction IPO. At the end of the bidding period, Fleming's investment bank has received the following bids: Price ($) Number of Shares Bid 8.00 25,000 7.75 100,000 7.50 75,000 7.25 150,000 7.00 150,000 6.75 275,000 6.50 125,000 What would be the price for share? What would be the amount raised? If the price rises 16% the first trading day, how much money was left at the table

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