Question
Suppose that First Meriam decides that Marvins shares are worth only $0.80 each. The common stock and the number of shareholders are as follows: Extract
Suppose that First Meriam decides that Marvins shares are worth only $0.80 each. The common stock and the number of shareholders are as follows:
| Extract | |
| Common stock | 1,000,000 |
| Number of Shareholders | 10 |
a. How many shares will Marvin need to sell to raise the additional $1.6 million? (Enter your answer in whole number not in millions.)
b. What fraction of the firm will Marvins managers own after the VC investment? (Enter your answer as a percent rounded to 2 decimal places.)Step by Step Solution
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier
5th Edition
111900294X, 978-1119002949
