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A new food company, ChiChun's Chows, Inc. (CCC), is trying to raise $5 million to fund expansion of the new company. In five years, the
A new food company, ChiChun's Chows, Inc. (CCC), is trying to raise $5 million to fund expansion of the new company. In five years, the company expects to sell itself to a strategic buyer for $50 million. CCC estimates that investors will require a return of 30% Based on these numbers, what is the present value of the company? What % of the company will investors demand? The founders hold 1,000,000 shares of stock in the company. How many shares will be outstanding after the investment? How many shares will be sold at what price? shares at per share How much will the founders' stock be worth at exit
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