An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If...

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An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If the start-up company

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Answer 1

Answer #1

Value of each stock option= 1000000/100000=10

Value of each the investment after 4 year= 25*100000=$2500000 i.e. $2.5 million

for IRR,

2.5/(1+IRR)^4=1

or, IRR= 25.74%

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Answer 2

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An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If...

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Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in...

An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If...

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Add Answer to: An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If...

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An angel investor provides a fledging start-up with $1,000,000 in exchange for 100,000 stock options. If...