VC wants to invest $4 million in a startup company and needs to decide how many shares of the company to ask for his investment Projections by the management indicate net income in year 5 of $20 million Similar firms are trading at PE ratios of 20 Company has 1,000,000 shares outstanding VC thinks that a 50 return is required for a venture of this risk, In addition, he thinks that when the firm goes public, additional shares equal to 40 of the common stock will be sold to the public Calculate how many shares VC should ask for his investment and which price per share he should pay?