Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $100,000 plus the idea for your

image text in transcribed You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $100,000 plus the idea for your new product. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $0.95 each. a. How many shares will you need to sell to raise the additional $1,292,000 ? Note: Enter your answer in whole numbers, not in millions. b. What fraction of the firm will you own after the VC investment? Note: Enter your answer as a percent rounded to 1 decimal place

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_2

Step: 3

blur-text-image_3

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

Financial Management

Authors: Rajiv Srivastava, Anil Misra

2nd Edition

0198072074, 9780198072072

More Books

Students also viewed these Finance questions

Question

Whats My Comfort with Change?

Answered: 1 week ago