16. Consider that New Venture formed with 2,000,000 shares held by founders, and new investor adds $1,000,000 for new shares. Exit (horizon) time is 7 years, and investor demands 55% annualized return in the first round. Also consider that venture income of $2,000,000 per year at exit, similar venture sold shares to public for $20,000,000, and similar venture income is $2,000,000 for last year. New Venture also gets the second-round investment of $1,000,000 at the third year with first- and second-round required returns of 55% and 30%, respectively. What is the second round acquired percentage final ownership (APFO)?

    a. 51.5%

    b. 31.25%

    c. 40.25%

    d. 60.45%

    e. None of the above