Problem 18-03 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 43,000 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? Round your answer to the nearest cent. $_______

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