Question
A venture capital company buys 500,000 shares of a start-ups stock for $8.20 million. If the company has 3.2 million shares outstanding prior to the
A venture capital company buys 500,000 shares of a start-up’s stock for $8.20 million. If the company has 3.2 million shares outstanding prior to the purchase, what is the company’s pre-money value? What is its post-money value?
Pre-money value?
Post-money value?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the premoney value and postmoney value of the startup company we first need to understa...
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
Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
