Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A venture capital company buys 4 0 0 , 0 0 0 new shares of a start - up's stock for $ 8 . 6

A venture capital company buys 400,000 new shares of a start-up's stock for $8.60 million. If the company has 3.4 million shares outstanding prior to the purchase, what is the company's pre-money value? What is its post-money value?
Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.
\table[[Pre-money value,,million],[Post-money value,,million]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Democracy Towards A Sustainable Financial System

Authors: Alessandro Vercelli

1st Edition

3030279111, 978-3030279110

More Books

Students also viewed these Finance questions

Question

c. What groups were least represented? Why do you think this is so?

Answered: 1 week ago