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Suppose the following balance sheet for Winbnb after second round of venture financing. Second Stage Market Value Balance Sheet ($mil) PLS HELP ! Assets Liabilities
Suppose the following balance sheet for Winbnb after second round of venture financing.
Second Stage Market Value Balance Sheet ($mil)
PLS HELP !
Assets Liabilities and Equity Cash from new Equity $6.00 Equity From 2nd stage $5.50 Fixed Assets $4.00 Equity From 1st stage $5.50 Other Assets $12.00 Your original Equity $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 20% 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
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