(a) The founder of Newco is seeking pound 6 million of capital to help fund the company's growth so that the company can be floated on the stock market in 5 years time. Companies with similar characteristics to Newco that have been floated recently, have been valued at 20 times their final year profit after tax. An analysis suggests that Newco's profits after tax in five years time will be pound 6 million (i) How much ownership should the founder give up to get the pound 6 million funding assuming investors require a return of 50 per cent on their investment? How many shares must be issued to the venture capitalist if the founder holds 1 million shares? (ii) Assume that the company needs to set aside 20 per cent of the equity to recruit new staff. What will be the number of shares held by the staff pool and the venture capitalist if the latter retains the percentage ownership as in 6(a)(i)? What will be the share price