Assume Time Warner shares have a market capitalization of $40 billion. The company is expected to pay a dividend of $0.25 per share and each share trades for $40. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 9%. If the firm's tax rate is 40%, what is the WACC?

A) 7.57%

B) 6.54%

C) 6.88%

D) 5.85%

Simone founded her company using $200,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 500,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?

A)	$2,400,000

B)	$1,200,000

C)	$3,600,000

D)	$1,320,000

Jeremy founded a company. He issues 100,000 shares of series A stock for his own $100,000 investment. He then goes through three further rounds of investment, as shown below: Round Price Number of Shares Series B $1.00 500,000 Series C $1.50 300,000 Series D $1.75 500,000 Which of the following is closest to the percentage of the company owned by the series D investors?

Question 38 options:

A)

36%

B)

54%

C)

39%

D)

29%