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Shockley's Shock Absorbers (SSA) is raising investment to fund its growth. The company expects to be sold to a larger auto parts manufacturer in five
Shockley's Shock Absorbers (SSA) is raising investment to fund its growth. The company expects to be sold to a larger auto parts manufacturer in five years for $30 million. You are considering investing $100,000 in SSA, and you want to earn 25% on your investment. The company has 5 million shares of stock outstanding. Given this, what is your current valuation for SSA? [Select ] Based on your current valuation for SSA, and using the pre-money valuation, what % of the company would you be buying? [Select] Based on your calculation of the % of the company you will be purchasing, how many shares will you purchase? [Select] What price will you pay for each share? (Select]
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