Answer B is incorrect

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $110,000 plus the idea for your new product. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $0.45 each. a. How many shares will you need to sell to raise the additional $567,000 ? Note: Enter your answer in whole numbers, not in millions. b. What fraction of the firm will you own after the VC investment? Note: Enter your answer as a percent rounded to 1 decimal place