Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the following balance sheet for Winbnb after second round of venture financing Second Stage Market Value Balance Sheet (Smil) Assets Liabilities and Equity Cash

image text in transcribed
Suppose the following balance sheet for Winbnb after second round of venture financing Second Stage Market Value Balance Sheet (Smil) Assets Liabilities and Equity Cash from new Equity $6.00 Equity From 2nd stage $5.50 $4.00 Equity From 1st stage Fixed Assets $5.50 $12.00 Your original Equity Other Assets $11.00 Total $22.00 $22.00 Suppose the company is able to convince the investors that there's a big market for the company and wants to negotiate the third round venture financing. Now let's assume that new investors decide to invest $15 million and require 30% of the company. a. What will be the total value of the company after this new round of financing? (sample answer: $30.60m) b. What will be the equity for the 1st stage investor? (sample answer. $30.60m) c. What will be the equity for the 2nd stage investor? (sample answer: $30.60m) d. What will be the equity for the original investor? (sample answer: $30.60m)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The F And I Revolution Finance Reimagined

Authors: Michael A Bennett

1st Edition

1507777221, 978-1507777220

More Books

Students also viewed these Finance questions

Question

What are the best methods to track and report supply cost savings?

Answered: 1 week ago