You founded a company last year. Initially, you invested $400,000 and received 1.2 million shares of stock. Your company now needs to raise a second round of capital, and you have identified an interested venture capitalist. This venture capitalist will invest $2 million and wants to own 40% of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 40% of the company?

b.What is the implied price per share of this funding round?