Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Inc. is seeking an investment of $61,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the

image text in transcribed

XYZ Inc. is seeking an investment of $61,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $431,000 7 years from now. Because of the risk, you will only invest if you can generate of return of 14% per year on your investment The founders want to have 24,000 shares of the company. How many shares a the company will your venture capital fund ask for? Round all your calculations to at least 4 decimals. Round your answer to the nearest whole number of shares, for example 100123. XYZ Inc. is seeking an investment of $61,000 from your venture capital firm. After extensive economic analysis, you estimate that the exit value of the company will be $431,000 7 years from now. Because of the risk, you will only invest if you can generate of return of 14% per year on your investment The founders want to have 24,000 shares of the company. How many shares a the company will your venture capital fund ask for? Round all your calculations to at least 4 decimals. Round your answer to the nearest whole number of shares, for example 100123

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions