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 100% of the company with 5.02 million shares.

image text in transcribed
You have started a company and are in luck-a venture capitalist has offered to invest. You own 100% of the company with 5.02 million shares. The VC offers $1.09 million for 800,000 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

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

Risk Management And Financial Institutions

Authors: John C Hull

6th Edition

1119932483, 9781119932482

More Books

Students also viewed these Finance questions

Question

=+ (d) Show that \, (He 0) =0 and A*(H) =1.

Answered: 1 week ago