You have bought 1 million shares in a restaurant chain. In this zero-stage investment, your business assets are $110,000 plus your new product idea. Look
You have bought 1 million shares in a restaurant chain. In this zero-stage investment, your business assets are $110,000 plus your new product idea. Look back at your restaurant chain company. Suppose that when you first approach his friend VC, he decides that his shares are worth only $1.00 each.
Required:
a. How many shares will he need to sell to raise the additional $1,370,000?
b. What fraction of the company will he own after the venture capital investment?
(Round your answer to 1 decimal.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To raise 1370000 the restaurant chain needs to sell 1370000 100 per share 1370000 ...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
