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Question 17 (6 points) You have started a new high-tech company. You own 100% of the company with 5 million shares outstanding. A Venture Capitalist

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Question 17 (6 points) You have started a new high-tech company. You own 100% of the company with 5 million shares outstanding. A Venture Capitalist (VC) offers you $1 million for 800,000 new shares in the company. a. What is the implied price per share paid by the Venture Caqpitalist? (2 marks) b. After the share issue, how many common shares outstanding will your company have? What will be the value of your company based on the total number of shares outstanding? (2 marks) c. What will be your fraction ownership of the company after the share issue? (What % of the company will you own) (2 marks) Format 2

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