Vic Nguyen, CEO of NewVenture, seeks to raise $5 million in a private placement of equity in his early stage venture. Nguyen conservatively projects net income of $5 million in year five and knows that comparable companies trade at a price eamings ratio of 20X. Maria Garcia of Growing Seeds Capital likes Vie Nguyen's business plan, but thinks it naive in one respect: to recruit a senior management team, she believes Vie will have to grant generous stock options in addition to the salaries projected in bis business plan. From past experience, she thinks management should bave the ability to own at least a 15\% share of the company by the end for year 5 , On further analysis and discussion, Vic and Maria agree that the company will probably need another round of finaneing in addition to the current $5 million. Maria believes that NewVenture will need an additional $3 million in equity at the, beginning of year 3 . While the first round investors (including bervelf) will required a 50% returns, Samantha feels that round 2 investors, in recognition of the progress made between now and then, will probably have a hurdle tate of only 30%. Given her beliefs, estimate the share of the company Maria should insist on today if her required rate of retum is 50%. Then estimate how many shares she would she get if there are currently 1 million shares outstanding. What would be the price per share for the fint round investon when considering stock options and the second round investorn? Please use two decimals. Failure to submit via dropbox a detailed workout would lead to a 50%6 penalty $7.49 per share $5.30 per share $3.97 per share $9.56 per share