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Several years ago, you founded a business with $0.4 million and created 1.7 million shares. Subsequently, you sold an additional 0.9 million shares to
Several years ago, you founded a business with $0.4 million and created 1.7 million shares. Subsequently, you sold an additional 0.9 million shares to an angel investor to finance the expansion of your business. Now, you want to raise capital from a venture capitalist (VC). The VC has agreed to invest $6 million with a post-money valuation of $15 million for your business. Assume this is the VC's first investment in your business. You own x% of the business after this funding round. How much is x? Round your answer to the nearest integer (no decimal places). Question 14 5 pts ABC Co. has 27 million shares outstanding trading at $18 per share. ABC also has $153 million in outstanding debt. ABC has equity beta of 2. The expected market return is 7.4% and the risk-free rate is 1.2%. Given that ABC has return on assets of 11.8%, find its cost of debt d%. How much is d? Round your answer to the nearest integer (no decimal places).
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