A potential investor is seeking to invest $500,000 in a venture,which currently has 1,000,000 shares held by its founders, and istargeting a 50% return five years from now. The venture is expectedto produce half a million dollars in income per year at year 5. Itis known that a similar venture recently produced $1,000,000 inincome and sold shares to the public for $10,000,000. a. What isthe percent ownership of our venture that must be sold in order toprovide the venture investors target return? b. What is the numberof shares that must be issued to the new investor in order for theinvestor to earn his target return? c. What is the issue price pershare? d. What is the pre-money valuation? e. What is thepost-money valuation?