Question
Chen Co was founded by John and David. Upon founding, the company issued 1,000,000 common shares to John and David, with each receiving 500,000. Seed
Chen Co was founded by John and David. Upon founding, the company issued 1,000,000 common shares to John and David, with each receiving 500,000.
Seed Round:
- Chad invests $500,000 for 30% of ABC.
1.) What type of shares will Chad likely receive and why?
2.) What is the Post-Money Valuation?
3.) What is the Pre-Money valuation?
4.) How many shares will Chad receive?
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Financial Accounting A Critical Approach
Authors: John Friedlan
3rd Edition
0070967601, 978-0070967601
