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A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a
A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 50% per year return for five years. The venture is expected to produce two million dollars in income per year at year 5. It is known that a similar venture recently produced $1,000,000 in income and sold shares to the public for $10,000,000.
What is the percent ownership of our venture that must be sold in order to provide the venture investors target return?
A. 33.33%
B. 75.94%
C. 18.98%
D. 15.67%
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