Pricing Stock Issues

Benjamin Garcia's start$-$up business is succeeding, but he needs $$192,000$ in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $$768,000$ and the angel has agreed to invest the $$192,000$ that is needed. Benjamin presently owns all $36,000$ shares in his business. Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant.

What is a fair price per share? Do not round intermediate calculations. Round your answer to the nearest cent.

$

How many additional shares must Benjamin sell to the angel? Do not round intermediate calculations. Round your answer to the nearest whole number.

shares

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Problem $18-03($Pricing Stock Issues$)$

Question $3$ of $5$