Question
Suppose Elizabeth Entrepreneur (EE) raises her first round of venture capital investment from Very Good Venture Capitalists (VC) in order to grow her company, University
Suppose Elizabeth Entrepreneur (EE) raises her first round of venture capital investment from Very Good Venture Capitalists (VC) in order to grow her company, University Food, Inc. (UFI) VC invests $4 million for 40% of the company in common stock and receives 4 million shares in UTI. What would be the payout to VC if the company is sold 5 years after the investment for $ 8 million?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
