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

The founders and owners of a private company have funded it through the following rounds of investment: 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 34 million. The price of shares is set using average price-earnings ratios for similar businesses of 17. What portion of the company will be owned by the angel investor after the IPO? A. 14% B. 19% C. 10% D. 25%

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