Question
You have started a company and are in lucka venture capitalist has offered to invest. You own 100 % of the company with 4.68 million
You have started a company and are in lucka venture capitalist has offered to invest. You own 100 % of the company with 4.68 million shares. The VC offers $ 1.05 million for 850,000 new shares.
a. What is the implied price pershare?
b. What is thepost-money valuation?
c. What fraction of the firm will you own after theinvestment?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
