Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Benjamin Garcia's start - up business is succeeding, but he needs $ 1 9 1 , 0 0 0 in additional funding to fund continued
Benjamin Garcia's startup business is succeeding, but he needs $ in additional funding to fund continued growth. Benjamin and an angel investor agree the business
is worth $ and the angel has agreed to invest the $ that is needed. Benjamin presently owns all shares in his business. Because the stock will be sold
directly to an investor, there is no spread; the other flotation costs are insignificant.
What is a fair price per share? Do not round intermediate calculations. Round your answer to the nearest cent.
$
How many additional shares must Benjamin sell to the angel? Do not round intermediate calculations. Round your answer to the nearest whole number.
shares
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