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Please have me to do this question, thank you CLASS EXERCISE #2 Use the following information for the next 4 problems. A potential investor is
Please have me to do this question, thank you
CLASS EXERCISE #2 Use the following information for the next 4 problems. A potential investor is seeking to invest $500,000 in our venture, which currently has 1,000,000 million shares held by us founders. We expect our venture to produce one million dollars of net income in year FOUR at which time we want to sell the business. We know that a similar venture with $4,000,000 in net income was sold for $40,000,000. 1. What is the percent ownership of our venture that must be sold in order to provide the venture investor'starget return of 20%? Shove price_ve Sld--46nm.d10. shart Held 1,000,OD t46 b. 12.78% c. 18.86% d. 21.00% 2. What is the number of shares that must boe isued to the new investor in order for the investor to earn his target return?, Number of store 10,000000 a. 57,686 b. 115,672 c. 250,431 d. 371,021 o12 3. What is the issue price per share Step by Step Solution
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