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A venture capital buys 400,000 shares of a start-up's stock for $5 million. If the company has 1.6 million shares outstanding prior to the purchase,
A venture capital buys 400,000 shares of a start-up's stock for $5 million. If the company has 1.6 million shares outstanding prior to the purchase, what is the company's pre-money value? What is its post-money value?
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