Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have started a company and are in luck a venture capitalist has offered to invest. You own 1 0 0 % of the company

You have started a company and are in lucka venture capitalist has offered to invest. You own
100% of the company with 5.03 million shares. The VC offers $1.04 million for 760,000 new
shares.
a. What is the implied price per share?
b. What is the post-money valuation?
c. What fraction of the firm will you own after the investment?
a. What is the implied price per share?
The implied price per share will be $ per share. (Round to the nearest cent.)
image text in transcribed

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

Contemporary Financial Management

Authors: Don Cyr, Alfred Kahl, William Rentz, R. Moyer

1st Edition

017616992X, 978-0176169923

More Books

Students also viewed these Finance questions

Question

What is an interbank transfer schedule, and why is it needed?

Answered: 1 week ago

Question

DO CONTRACT WORKERSGETTHE SAME ENTITLEMENTS AS EMPLOYEES?

Answered: 1 week ago

Question

2.5 Describe the purpose of employment equity programs.

Answered: 1 week ago