Question
QUESTION ONE [30 MARKS] A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, and foresees an exit
QUESTION ONE [30 MARKS]
A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, and foresees an exit of $60 million in five years. The exit value includes the $2.0 million investment. There are currently 250,000 shares.
Each part below is worth 6 marks. Answer the following:
- What ownership percentage does the VC require to make the investment?
- How many new shares are issued to the VC?
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Essentials Of Health Care Finance
Authors: William O. Cleverley, James O. Cleverley
8th Edition
1284094634, 978-1284094633
