Question
A is a private firm. The firm has limited capital and is estimated to have a value of $80 million. A venture capitalist is willing
A is a private firm. The firm has limited capital and is estimated to have a value of $80 million. A venture capitalist is willing to contribute $20 million to the firm in exchange for 30% of the value of the firm. With this additional capital, the firm will be worth $120 million. If capital markets are competitive what percentage of firm value will the venture capitalist receive?
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The Oxford Handbook Of Credit Derivatives
Authors: Alexander Lipton, Andrew Rennie
1st Edition
0199546789, 978-0199546787
