QUESTION $3$

"You founded your firm with a contribution of $$250,000,$ receiving $5,000,000$ shares of stock. Since then, you sold $6,000,000$ stocks to Angel Investors. Now

you are considering raising more capital from a Venture Capitalist. They will invest $$7,000,000$ and would receive $5,000,000$ newly issued shares. If this is

the VC$\text{'}$s first investment in the company, what percentage will you own? Note: Express your answers in strictly numerical terms. For example, if the

answer is $5$ percent, enter $0\mathrm{.}05$ as an answer."

QUESTION $4$

"You founded your firm with a contribution of $$250,000,$ receiving $5,000,000$ shares of stock. Since then, you sold $6,000,000$ stocks to Angel Investors. Now

you are considering raising more capital from a Venture Capitalist. They will invest $$7,000,000$ and would receive $5,000,000$ newly issued shares. If this is

the VC$\text{'}$s first investment in the company, what is the value of your shares? Express the terms of your answer completely and in strictly numerical terms.

For example: If your answer is one million dollars, write: $1000000."$

QUESTION $5$

"Company B$,$ is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of

$$100$ Millions of USDs and earnings of $$50$ of Millions of USDs. Company $B$ has filed a registration statement with the SEC for its IPO. If the industry

average Price$/$Earnings ratio and Price$/$Revenues ratio for the recent fiscal year were $15$ and $0\mathrm{.}8$ respectively. Estimate the IPO price for Company B using

the Price$/$Earnings ratio and assuming that they will issue $15$ Million shares."

QUESTION $3$

"You founded your firm with a contribution of $$250,000,$ receiving $5,000,000$ shares of stock. Since then, you sold $6,000,000$ stocks to Angel Investors. Now

you are considering raising more capital from a Venture Capitalist. They will invest $$7,000,000$ and would receive $5,000,000$ newly issued shares. If this is

the VC$\text{'}$s first investment in the company, what percentage will you own? Note: Express your answers in strictly numerical terms. For example, if the

answer is $5$ percent, enter $0\mathrm{.}05$ as an answer."

QUESTION $4$

"You founded your firm with a contribution of $$250,000,$ receiving $5,000,000$ shares of stock. Since then, you sold $6,000,000$ stocks to Angel Investors. Now

you are considering raising more capital from a Venture Capitalist. They will invest $$7,000,000$ and would receive $5,000,000$ newly issued shares. If this is

the VC$\text{'}$s first investment in the company, what is the value of your shares? Express the terms of your answer completely and in strictly numerical terms.

For example: If your answer is one million dollars, write: $1000000."$

QUESTION $5$

"Company B$,$ is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of

$$100$ Millions of USDs and earnings of $$50$ of Millions of USDs. Company $B$ has filed a registration statement with the SEC for its IPO. If the industry

average Price$/$Earnings ratio and Price$/$Revenues ratio for the recent fiscal year were $15$ and $0\mathrm{.}8$ respectively. Estimate the IPO price for Company B using

the Price$/$Earnings ratio and assuming that they will issue $15$ Million shares."