When XYZ Co. was established, 1,000 shares were issued to the founders at $100 each. Their business has been a great success and in order to accelerate growth, they are now planning to raise new money by issuing shares to a venture capital fund. The investment bank advising XYZ suggested splitting the existing shares 1 to 100 and then issuing 100,000 new shares to the venture capital at $100 each.

After these transactions: the founders would own ........... shares; XYZ would be able to raise $.............; and the valuation of XYZ would be $.........

2. When XYZ Co. was established, 1,000 shares were issued to the founders at $100 each. Their business has been a great success and in order to accelerate growth, they are now planning to raise new money by issuing shares to a venture capital fund. The investment bank advising XYZ suggested splitting the existing shares 1 to 100 and then issuing 100,000 new shares to the venture capital at $100 each. After these transactions: the founders would own shares; XYZ would be able to raise $ ); and the valuation of XYZ would be $