Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.)

Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?)

50%

33%

25%

40%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Banking With Integrity The Winners Of The Financial Crisis

Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson

1st Edition

0230289959,0230346499

More Books

Students also viewed these Finance questions