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Consider a start-up requiring $4.000 initial funding Furthermore, assume that a VC estimates the firm would yield the following cash flows with probability p=0.8 and

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Consider a start-up requiring $4.000 initial funding Furthermore, assume that a VC estimates the firm would yield the following cash flows with probability p=0.8 and 1p=0.2, respectively. What percentage of equity would the VC demand in a simple common stock capitalization in order to attain an expected IRR =35% ? 75 percent 67 percent 51 percent 46 percent 83 percent

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