Question
Benjamin Garcia's start-up business is succeeding, but he needs $201,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business
Benjamin Garcia's start-up business is succeeding, but he needs $201,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $804,000 and the angel has agreed to invest the $201,000 that is needed. Benjamin presently owns all 37,000 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.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
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