Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 (10 points). You founded your own firm two years ago. You initially contributed $50,000 of your money and in return received 1,000,000 shares

image text in transcribed

Question 6 (10 points). You founded your own firm two years ago. You initially contributed $50,000 of your money and in return received 1,000,000 shares of stock. Since then, you have sold an additional 750,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. Assume the venture capitalist would invest $2 million and would receive 2,000,000 newly issued shares. a)Assuming that this is the venture capitalist' s first investment in your company, what percentage of the firm will he end up owning? b)What percentage will you own? What is the value of your shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions