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Starware Software was founded last year to develop software for gaming applications. The founder initially invested...

Starware Software was founded last year to develop software for gaming applications. The founder initially invested $700,000 and received 10 million shares of stock. Starware now needs to raise a second round of​ capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 13% of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with

13% of the​ company? What is the implied price per share of this funding​ round?

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING IS MENTIONED, I HAVE TAKEN PRICE OF SHARE TO 2 DECIMALS, AND NO OF SHARES ROUNDED TO ZERO DECIMAL. ANY CHANGE LET ME KNOW. WILL CHANGE ANSWER ACCORDINGLY. THANK YOU Home ert Page Layout Formulas Data Review V s Cut ta copy. Format Painter Add-Ins AutoSum Calibri General Fill В า 프. m. a-Δ

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