You are contemplating a $275,000 investment in a food delivery company with tremendous potential. The company does not expect to require further funding through year 5. The company is expected to have a net income of $100,000 in year 5. Comparable companies command P/E ratios of about 18x. For the risk you assume, you require a 23 percent IRR on your investment. 1.What ownership should you ask for in exchange for your investment of $275,000? Enter your answer in percent, round your answer to 0 decimals, do not use the % symbol.

2.The company has 1,000,000 outstanding shares and will issue preferred shares to you convertible to common shares at a ratio of 2:1 (2 preferred shares for 1 common share). How many preferred shares will the company have to issue to you?

3. What price per share will you pay for your preferred shares?

4.What is the post-money valuation of the company?

5.What is the pre-money valuation of the company? Round your answer to 0 decimals, do not use the $ symbol