Please answer parts A and BHomework Answers
a-1). New Total Number of shares = Founder's Shares / [1 - Ownership% desired by venture capitalist]
= 8 million / [1 - 0.20] = 8 million / 0.80 = 10 million shares
Shares Owned by Venture Capitalist = New total number of shares - Founder's shares
= 10 million - 8 million = 2 million
a-2). Implied price per share = Invested Amount by venture capitalist / Shares Owned by Venture Capitalist
= $1 million / 2 million = $0.50 per share
b). Post-money Valuation = Implied price per share * New Total Number of shares
= $0.50 * 10 million = $5 million
Add Answer to:
Please answer parts A and B 2 of 12 (1 complete) HW Score: 5.56%, 0.67 of 12 pts Score: 0 of 1 pt P 14-2 (book/static) Q...
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%...
Score: 0 of 1 pt 3 of 12 (0 complete) HW Score: 0%, 0 of 12...
Score: 0 of 1 pt 3 of 12 (0 complete) HW Score: 0%, 0 of 12 pts P 12-4 (book/static) Question Help You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50% of the money in GoldFinger (currently $25/share), 25% of the money in Moosehead (currently $80/share), and the remainder in Venture Associates (currently $2/share). Suppose GoldFinger stock goes up to $30/share, Moosehead stock drops to $60/share, and Venture...
core: 0 of 2 pts 7-2 (book/static) 7of 10 (3 complete) HW Score: 30%, 6 of...
core: 0 of 2 pts 7-2 (book/static) 7of 10 (3 complete) HW Score: 30%, 6 of 20 pts E Question Help ou are considering investing in a start up company. The founder asked you for $200,000 today and you expect to get $1,000,000 in 9 years Given the iskiness of the investment opportunity, your cost of capital is 20%. What is the NPV of the investment opportunity? Should you undertake the investment pportunity? Calculate the IRR and use it to...
Score: 0 of 1 pt 3 of 15 (2 complete) P 12-4 (similar to) You are...
Score: 0 of 1 pt 3 of 15 (2 complete) P 12-4 (similar to) You are considering how to invest part of your retirement savings. You have decided to put $300,000 into three stocks: 52% of the money in GoldFinger (currently $24/share), 24% of the money in Moosehead (currently $71/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $36/share, Moosehead stock drops to $57/share, and Venture Associates stock drops to $3 per share. a....
Save Score: 0 of 10 pts 2 of 4 (1 complete) HW Score: 4.13%, 2.43 of...
Save Score: 0 of 10 pts 2 of 4 (1 complete) HW Score: 4.13%, 2.43 of 59 pts no P3-4 (similar to) Question Help Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of 426,000. The company is subject to a 21% tax rate and must pay $63.500 in preferred stock dividends before distributing any earnings on the 176,000 shares of common stock currently outstanding a. Calculate Everdeen's 2019 earnings per share (EPS)...
Save Score: 0.5 of 1 pt 2 of 15 (15 complete) HW Score: 70%, 14 of...
Save Score: 0.5 of 1 pt 2 of 15 (15 complete) HW Score: 70%, 14 of 20 pts 6.2.7 E estion Help An orthodontist has three financing packages, and each has a different service charge. He estimates that 10% of patients use the first plan which has a $10 franche: 40% use the second plan which has a $20 finance charge and 50% use the third plan which has a $30 finance charge. Complete parts and a) Find the expected...
Homework: Chapter 3 HMWK Save Score: 0 of 1 pt 6 of 30 (19 complete) HW...
Homework: Chapter 3 HMWK Save Score: 0 of 1 pt 6 of 30 (19 complete) HW Score: 60%, 18 of 30 pts P3-4 (similar to) Question Help Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of $434,000. The company is subject to a 21% tax rate and must pay $65,500 in preferred stock dividends before distributing any earnings on the 164,000 shares of common stock currently outstanding a. Calculate Everdeen's 2019 earnings...
Score: 0 of 1 pt Question Help P 2-19 (book/static) In December 2015, General Electric (GE)...
Score: 0 of 1 pt Question Help P 2-19 (book/static) In December 2015, General Electric (GE) had a book value of equity of $98.0 billion, 9.4 billion shares outstanding, and a market price of $31.00 por share, GE also had cash of $102.0 billion, and total debt of $199.0 billion a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?...
Homework: Chapter 15 HW B Save core: 0 of 1 pt 4 of 4 (3 complete)...
Homework: Chapter 15 HW B Save core: 0 of 1 pt 4 of 4 (3 complete) HW Score: 75%, 3 of 4 p D-21 (similar to) Question Help Data for Newton State Bank follow: (Click the icon to view the data.) Evaluate the common stock of Newton State Bank as an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness during the past year. Round to two decimal places. Begin...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the a...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the assumption that KMS's market share will increase by 0.23% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $21.5 million. Assume the following: the debt financing of the expansion will be delayed accordingly (end of 2018). KMS uses a ten-year bond, interest rates remain the same at 7.3%,...
Score: 0 of 1 pt 3 of 12 (0 complete) HW Score: 0%, 0 of 12 pts P 12-4 (book/static) Question Help You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50% of the money in GoldFinger (currently $25/share), 25% of the money in Moosehead (currently $80/share), and the remainder in Venture Associates (currently $2/share). Suppose GoldFinger stock goes up to $30/share, Moosehead stock drops to $60/share, and Venture...
core: 0 of 2 pts 7-2 (book/static) 7of 10 (3 complete) HW Score: 30%, 6 of 20 pts E Question Help ou are considering investing in a start up company. The founder asked you for $200,000 today and you expect to get $1,000,000 in 9 years Given the iskiness of the investment opportunity, your cost of capital is 20%. What is the NPV of the investment opportunity? Should you undertake the investment pportunity? Calculate the IRR and use it to...
Score: 0 of 1 pt 3 of 15 (2 complete) P 12-4 (similar to) You are considering how to invest part of your retirement savings. You have decided to put $300,000 into three stocks: 52% of the money in GoldFinger (currently $24/share), 24% of the money in Moosehead (currently $71/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $36/share, Moosehead stock drops to $57/share, and Venture Associates stock drops to $3 per share. a....
Save Score: 0 of 10 pts 2 of 4 (1 complete) HW Score: 4.13%, 2.43 of 59 pts no P3-4 (similar to) Question Help Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of 426,000. The company is subject to a 21% tax rate and must pay $63.500 in preferred stock dividends before distributing any earnings on the 176,000 shares of common stock currently outstanding a. Calculate Everdeen's 2019 earnings per share (EPS)...
Save Score: 0.5 of 1 pt 2 of 15 (15 complete) HW Score: 70%, 14 of 20 pts 6.2.7 E estion Help An orthodontist has three financing packages, and each has a different service charge. He estimates that 10% of patients use the first plan which has a $10 franche: 40% use the second plan which has a $20 finance charge and 50% use the third plan which has a $30 finance charge. Complete parts and a) Find the expected...
Homework: Chapter 3 HMWK Save Score: 0 of 1 pt 6 of 30 (19 complete) HW Score: 60%, 18 of 30 pts P3-4 (similar to) Question Help Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of $434,000. The company is subject to a 21% tax rate and must pay $65,500 in preferred stock dividends before distributing any earnings on the 164,000 shares of common stock currently outstanding a. Calculate Everdeen's 2019 earnings...
Score: 0 of 1 pt Question Help P 2-19 (book/static) In December 2015, General Electric (GE) had a book value of equity of $98.0 billion, 9.4 billion shares outstanding, and a market price of $31.00 por share, GE also had cash of $102.0 billion, and total debt of $199.0 billion a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?...
Homework: Chapter 15 HW B Save core: 0 of 1 pt 4 of 4 (3 complete) HW Score: 75%, 3 of 4 p D-21 (similar to) Question Help Data for Newton State Bank follow: (Click the icon to view the data.) Evaluate the common stock of Newton State Bank as an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness during the past year. Round to two decimal places. Begin...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the assumption that KMS's market share will increase by 0.23% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $21.5 million. Assume the following: the debt financing of the expansion will be delayed accordingly (end of 2018). KMS uses a ten-year bond, interest rates remain the same at 7.3%,...
Most questions answered within 3 hours.
-
M. Laing has suggested a new arrangement of the periodic table
(J.Chem.Ed.1989, 66,
746). Answer the following...
asked 17 minutes ago -
Café Michigan's manager, Gary Stark, suspects that demand for
mocha latte coffees depends on the price...
asked 17 minutes ago -
A US merchant purchases wine from a vineyard outside of Paris.
The wine is transported to...
asked 23 minutes ago -
we have (TTN)*
We have to use just one 2-bit counter with 1-bit global
history?
and...
asked 24 minutes ago -
Firms that fail to compete with lower prices and/or better
products will go bankrupt. Does this...
asked 24 minutes ago -
Question 1 Current and Resistance
Part A: A current of -14.5 nanoamperes is how many electrons...
asked 26 minutes ago -
The population standard deviation for the height of college
basketball players is 3.4 inches. If we...
asked 37 minutes ago -
6.) Use valence bond theory to describe the number and types of
hybrid bonding orbitals on...
asked 39 minutes ago -
2. Define/explain the following traits that are important
adaptations for different types of vertebrate animals:
Jaws...
asked 40 minutes ago -
Firm K produced 45,000 radios using 9,000 hours of labor in
2003; total labor costs were...
asked 40 minutes ago -
Use the information in the table to answer the
question.
Year
2015
2016
2017
2018
Nominal...
asked 45 minutes ago -
Kelso Corporation just paid a dividend of D_0 = $1.50 per
share, and that dividend is...
asked 47 minutes ago