Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 01, 2024

A venture capital company buys 400,000 new shares of a start-up's stock for $5.40 million. If the company has 1.8 million shares outstanding prior

A venture capital company buys 400,000 new shares of a start-up's stock for $5.40 million. If the company has 1.8 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. Pre-money value Post-money value million million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Intermediate Accounting

Authors: Earl K. Stice, James D. Stice

18th edition

538479736, 978-1111534783, 1111534780, 978-0538479738

More Books

Students also viewed these Accounting questions

Question

★★★★★

The following information has been extracted from the trial balance of M/s Randhir Transport Corporation. Adjustments 1. Closing stock for the year was Rs. 35,500. 2. Depreciation charged on plant...

Answered: 1 week ago

Question

★★★★★

On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,141,000 in cash. The price paid was proportionate to Sellinger's total fair value, although...

Answered: 1 week ago

Question

★★★★★

Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2014,...

Answered: 1 week ago

Question

★★★★★

With reference to Exercise 22 of Section 3.5, suppose that the probabilities pi, i = 1, 2,, are all equal, that is, p1 = p2 = = p. Let R1(p), R2(p), and R3(p) be the probabilities that electricity...

Answered: 1 week ago

Question

★★★★★

Job costing with single direct-cost category, single indirect-cost pool, law firm. Wigan Associates is a recently formed law partnership. Ellery Hanley, the managing partner of Wigan Associates, has...

Answered: 1 week ago

Question

★★★★★

In a bid for Bir Zeit University to build a hospital several bidders conspire to split contracts, between them thereby ensuring that each gets a certain amount of the work, what type of corruption...

Answered: 1 week ago

Question

★★★★★

- 11 = Problem 2 (10 points): On June 1, 2020, Rocker Company paid $3,200,000 to acquire Cycleworks Corporation, which became a division of Rocker Company. Cycleworks Corporation reported the...

Answered: 1 week ago

Question

★★★★★

Brattleboro Barrel Company is considering purchasing a new semi-truck for its operations. If the initial cost of the truck is $196,000 with a salvage value of $25,000, the truck has an annual...

Answered: 1 week ago

Question

★★★★★

Jim is on trial for the rape of Sandra. Jim's attorney wants to introduce evidence ( 1 ) The fact that Sandra is the mother of Jim's child, who was born three years ago when they were dating ( they...

Answered: 1 week ago

Question

★★★★★

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

★★★★★

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

★★★★★

Exeter Division of Wetherby Labs acquired an asset with a cost of $800,000 and a four-year life. The cash flows from the asset, considering the effects of inflation, were scheduled as follows: Year 1...

Answered: 1 week ago

Question

★★★★★

A company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to decrease retained earnings, increase...

Answered: 1 week ago

Question

★★★★★

During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...

Answered: 1 week ago

Question

★★★★★

a. Sometimes, our discussion of marginal cost and marginal revenue unintentionally hides the real issue: the entrepreneurs quest to maximize total profits. Here is information on a firm: p=58 Using...

Answered: 1 week ago

Question

★★★★★

a. In the textbook The Applied Theory of Price, D. N. McCloskey refers to the equation MR = MC as the rule of rational life. Who follows this rule: monopolies, competitive firms, or both? b. Rapido,...

Answered: 1 week ago

Question

★★★★★

a. Where will profits be higher: when demand for a patented drug is highly inelastic or when demand for a patented drug is highly elastic? (Figure 13.4 may be helpful.) b. Which of those two drugs...

Answered: 1 week ago

Previous Question Next Question