Question
Please show ALL calculations Question 5.(15 pointsMarcus Company, is a successful start up business, but needs additional funding of$500,000 to fund continued growth.Currently the company
Please show ALL calculations
Question 5.(15 pointsMarcus Company, is a successful start up business, but needs additional funding of$500,000 to fund continued growth.Currently the company is worth $1,500,000.An angel investor is willing to invest the full $500,000.The owner of the company currently owns all 200,000 shares in her business
a.Calculate the fair price per share
b.How many additional shares must be sold to the angel investor?
c.What proportion of the company will the angel investor own?
d.What are 3 reasons that explain why the owner of the company wants to raise new equity capital?
e.What are 3 reasons that explain why the owner might consider raising new capital through debt rather than equity?
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