This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: David found a company and goes through the investment rounds shown below:RoundSourcePriceNumber of ... (Read 43 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
on: Jul 9, 2019
David found a company and goes through the investment rounds shown below:

RoundSourcePriceNumber of Shares
Series ASelf$0.50400,000
Series BAngel$1.00500,000
Series CVenture Capital$1.50300,000
Series DVenture Capital$2.25400,000

He decides to take the company public through an IPO, issuing 2 million new shares. Assuming that he successfully completes the IPO, the net income for the next year is estimated to be $8 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 15.0. What share of the company will David own after the IPO?
◦ 11%
◦ 22%
◦ 16%
◦ 14%
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Shelles on Jul 9, 2019

ilianabrrr

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 45% of students answer this correctly


Shelles

  • Member
  • Posts: 582
Reply 2 on: Jul 9, 2019
YES! Correct, THANKS for helping me on my review

sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Examples of deep-sea corals found in the Sable Gully, 200 km off the coast of Nova Scotia. Examples of deep-sea corals found in the Sable Gully, 200 km off the coast of Nova Scotia.
Open space is found in a Lodgepole pine stand after thinning. Open space is found in a Lodgepole pine stand after thinning.
David Suzuki David Suzuki
New employees should be shown all exits in case of an emergency. New employees should be shown all exits in case of an emergency.
Cyanosis as shown here at the patient’s fingertips results from a lack of oxygen in the tissues Cyanosis as shown here at the patient’s fingertips results from a lack of oxygen in the tissues
Action of type I and type II topoisomerases, as shown by gel electrophoresis Action of type I and type II topoisomerases, as shown by gel electrophoresis
Video: The Vestibular System

For a complete list of videos, visit our video library