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4.NewCorp needs to raise funding for the next stage of its growth. The business is currently valued at $2 million but has $0 in its
4.NewCorp needs to raise funding for the next stage of its growth. The business is currently valued at $2 million but has $0 in its bank account. NewCore wants to raise $500,000 in new funding. d. After the financing, how much will the company be worth? e. After the financing, how much of the company will $500,000 represent? f. Your answer to (b) tells us how much of the company they need to sell to get the $500,000. There are currently 1 million shares of New Cork outstanding, of an authorized 10 million shares. How many shares will the company need to issue to the new investor(s) in order to raise the $500,000? NewCorp needs to raise funding for the next stage of its growth. The business is currently valued at $2 million. New Serp wants to raise $500,000 in new funding. The founders currently own 1,000,000 shares of New Corp; there are no other shareholders. g. What percent of the company do the founders own before the financing? h. What is the value of the company per share before financing? i. What is the total value of the founders' stock before the new financing? j. The company sells 250,000 shares at $2 per share to raise the $500,000. After the financing, how much (%) of the company will the founders own? k. What will be the value of the company per share after financing? (Total value of the company divided by the # of shares outstanding)
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