Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 072 pts XYZ Inc. is seeking an investment of $63,000 from your venture capital firm. After extensive economic analysis, you estimate that the

image text in transcribedimage text in transcribed

Question 9 072 pts XYZ Inc. is seeking an investment of $63,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $428,000 5 years from now. Because of the risk, you will only invest if you can generate of return of 14% per year on your investment. The founders want to have 26,000 shares of the company. How many shares a the company will your venture capital fund ask for? Round all your calculations to at least 4 decimals. Round your answer to the nearest whole number of shares, for example 100123. You Answered 12,410 Correct Answer 10,283 margin of error +/- 0.6% Question 10 0/1 pts XYZ Inc. is seeking an investment of $63,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $339,000 4 years from now. Because of the risk, you will only invest if you can generate of return of 11% per year on your investment. The founders want to have 100,000 shares of the company. What is the post-money valuation of the company? Round your answer to the nearest whole number, for example 50501. You Answered 39,299 Correct Answer 223,310 margin of error +/- 0.6%

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

Personal Finance Turning Money Into Wealth

Authors: Arthur J Keown

5th Edition

0136070620, 9780136070627

More Books

Students also viewed these Finance questions

Question

=+What action steps will you take to handle this situation?

Answered: 1 week ago