Question
A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, and foresees an exit of $60 million in
A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, and foresees an exit of $60 million in five years.The exit value includes the $2.0 million investment.There are currently 250,000 shares.
Each part below is worth 6 marks.Answer the following:
a)What ownership percentage does the VC require to make the investment?
b)How many new shares are issued to the VC?
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Core Concepts Of Accounting Information Systems
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
11th Edition
9780470507025, 0470507020
