Question
A VC group invests in your company and in return the firm gives them 100,000 preferred shares. Each share will pay out $3 annually into
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A VC group invests in your company and in return the firm gives them 100,000 preferred shares. Each share will pay out $3 annually into perpetuity. If the prevailing cost of preferred equity is 15%, how much did the VC group pay for the 100,000 shares assuming the price paid was "fair"?
A $1.0 million
B $2.5 million
C $1.5 million
D $2.0 million
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Valuing Agile The Financial Management Of Agile Projects
Authors: Alan Moran
1st Edition
0117082880, 9780117082885
