The founders and owners of a private company have funded it through the following rounds of investment:

Round	Source	Price	Number of Shares
Series A	Self	$1.00	200,000
Series B	Angel	$1.00	300,000
Series C	Venture Capital	$1.25	400,000

The owners decide to take the company public through an IPO, issuing 1 million new shares. Assuming that they successfully complete the IPO, the net income for the next year is estimated to be $5 million. The price of shares is set using average

priceminusearnings

ratios for similar businesses of 17.0.

What portion of the company will be owned by the angel investor after the IPO?

A.12%

B.30%

C.33%

D.22%

E.16%