Question
Question: 1.You have started a company and are in lucklong dasha venture capitalist has offered to invest.... 1.You have started a company and are in
Question: 1.You have started a company and are in lucklong dasha venture capitalist has offered to invest....
1.You have started a company and are in lucklong dasha venture capitalist has offered to invest. You own 100 % of the company with 4.83million shares. The VC offers $ 1.04million for 820,000 new shares.
a. What is the implied price per? share?
b. What is the? post-money valuation?
c. What fraction of the firm will you own after the? investment?
2. Roundtree Software is going public using an auction IPO. The firm has received the following? bids:
| Price? ($) | Number of Shares |
| 14.40 | 100,000 |
| 14.20 | 280,000 |
| 14.00 | 500,000 |
| 13.80 | 1,300,000 |
| 13.60 | 1,280,000 |
| 13.40 | 840,000 |
| 13.20 | 460,000 |
Assuming Roundtree would like to sell 2.18 million shares in its? IPO, what will be the winning auction offer? price?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
