Question

You founded a company three years ago. You invested $5,000 the company and the company issued...

You founded a company three years ago. You invested $5,000 the company and the company issued you 5,000 shares. A year later, your family helped you grow the company by investing $10,000 for 2,500 shares. Today, you issued 1,000 shares for $40 per share. There are 35,000 shares authorized. What is the value of the company today?

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Answer #1

Value of company = shares outstanding *price = (5000+2500+1000)*40

=

340000

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