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6 . ( 1 5 pts ) Chemtech wants to have a venture investor inject $ 0 . 5 million at Year 0 and $
pts Chemtech wants to have a venture investor inject $ million at Year and $ million at Year The founder has shares. The founder expects to make a profit until Year when the net income is expected to be $ The common stock of Biosystems, a comparable firm, currently trades in the overthe counter at $ per share. Biosystems' net income for the most recent year was $ and the firm has shares of common stock outstanding. Venture investors want a and compound annual rate of return for rounds and respectively. A What percentage of ownership is sold during the first round? During the second round? points B How many shares will be issued in rounds and points C If percent of total equity in Year is set aside for incentive compensation, what is the secondround share price? points
pts Chemtech wants to have a venture investor inject $ million at Year and $ million at Year The founder has shares. The founder expects to make a profit until Year when the net income is expected to be $ The common stock of Biosystems, a comparable firm, currently trades in the overthe counter at $ per share. Biosystems' net income for the most recent year was $ and the firm has shares of common stock outstanding. Venture investors want a and compound annual rate of return for rounds and respectively. A What percentage of ownership is sold during the first round? During the second round? points B How many shares will be issued in rounds and points C If percent of total equity in Year is set aside for incentive compensation, what is the secondround share price? points
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