Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You founded your firm with a contribution of $ 7 5 0 0 0 0 , receiving 3 0 0 0 0 0 0 shares

"You founded your firm with a contribution of $750000, receiving 3000000 shares of stock. Since then, you sold 10000000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $25000000 and would receive 2000000 newly issued shares. If this is the VC's first investment in the company, what is the value of your shares? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000."

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