Read the following information and answer the questions below (5 points). Two years after Venice Partners invested $1,400,000 into Invisibilia, Inc. (from our preferred funding class example Round 2 shown below) Invisibilia, Inc. had a successful initial public offering (IPO) on July 1, 2018. In the IPO, Invisibilia, Inc. sold 5,500,000 common shares for $220,000,000. Using some of the IPO proceeds, Invisibilia, Inc. redeemed all of Mark Maker's and Venice Partners' investments of $400,000 and $1,400,000, respectively. In connection with the IPO, Invisibilia, Inc. granted stock options with a weighted average $30 exercise price for 300,000 common shares to Mark Maker and 700,000 common shares to Antonio Merchant of Venice Partners. Also in connection with the IPO, Kayu Rockchalk was granted stock options with a weighted average $55 exercise price for 350,000 common shares. As of December 31, 2018, Balance Sheet After Round 2- Book Value Common Stock Amount Shares Preferred Redeemable Amount Shares Shareholders' Equity Amount Shares Ownership % $ 2.500.000 1.000.000 350.000 Kayu Rockchalk Mark Maker Venice Partners $ 10.000 $ 1.000 $ 1.000 4.000 2 2,381 $ $ 399.000 1.399.000 998 3.330,952 $ $ $ 10.000 400.000 1.400.000 4.000 1.000 3.333,333 48% 12% 40% Totals $ 12.000 4.004,381 $ 1.798.000 4.328,952 $ 1.810.000 8.333,333 100% Answers As of December 31, 2018, what was invisibilia, Inc.'s basic earnings per share? Round result to 4 digits. [Use the ROUNDED beginning common stock balances (4,004 shares above) and related share retirements (4 shares, not 4.381 shares) from the in-class round 2 preferred funding example to compute the weighted-average common stock balance for 2018]. 1.000.000 2 As of December 31, 2018, how many stock options of Invisibilia, Inc. were "out-of-the-money"? 1.000.000 3 Using the treasury stock method, how many additional common shares of Invisibilia, Inc. would be issued at December 31, 2018? 4 As of December 31, 2018, what was Invisibilia, Inc.'s fully-diluted earnings per share (round to 4 digits)? Fully Diluted EPS 26 5 As of December 31, 2018 what was invisibilia, Inc.'s equity market capitalization value? Read the following information and answer the questions below (5 points). Two years after Venice Partners invested $1,400,000 into Invisibilia, Inc. (from our preferred funding class example Round 2 shown below) Invisibilia, Inc. had a successful initial public offering (IPO) on July 1, 2018. In the IPO, Invisibilia, Inc. sold 5,500,000 common shares for $220,000,000. Using some of the IPO proceeds, Invisibilia, Inc. redeemed all of Mark Maker's and Venice Partners' investments of $400,000 and $1,400,000, respectively. In connection with the IPO, Invisibilia, Inc. granted stock options with a weighted average $30 exercise price for 300,000 common shares to Mark Maker and 700,000 common shares to Antonio Merchant of Venice Partners. Also in connection with the IPO, Kayu Rockchalk was granted stock options with a weighted average $55 exercise price for 350,000 common shares. As of December 31, 2018, Balance Sheet After Round 2- Book Value Common Stock Amount Shares Preferred Redeemable Amount Shares Shareholders' Equity Amount Shares Ownership % $ 2.500.000 1.000.000 350.000 Kayu Rockchalk Mark Maker Venice Partners $ 10.000 $ 1.000 $ 1.000 4.000 2 2,381 $ $ 399.000 1.399.000 998 3.330,952 $ $ $ 10.000 400.000 1.400.000 4.000 1.000 3.333,333 48% 12% 40% Totals $ 12.000 4.004,381 $ 1.798.000 4.328,952 $ 1.810.000 8.333,333 100% Answers As of December 31, 2018, what was invisibilia, Inc.'s basic earnings per share? Round result to 4 digits. [Use the ROUNDED beginning common stock balances (4,004 shares above) and related share retirements (4 shares, not 4.381 shares) from the in-class round 2 preferred funding example to compute the weighted-average common stock balance for 2018]. 1.000.000 2 As of December 31, 2018, how many stock options of Invisibilia, Inc. were "out-of-the-money"? 1.000.000 3 Using the treasury stock method, how many additional common shares of Invisibilia, Inc. would be issued at December 31, 2018? 4 As of December 31, 2018, what was Invisibilia, Inc.'s fully-diluted earnings per share (round to 4 digits)? Fully Diluted EPS 26 5 As of December 31, 2018 what was invisibilia, Inc.'s equity market capitalization value
