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 30 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
Great answer, keep it coming :)

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Three Mechanisms of Gene Transfer Found in Bacteria Three Mechanisms of Gene Transfer Found in Bacteria
Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670 New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Shown here is Pope Leo III crowning Charlemagne king of the Franks in 800. Shown here is Pope Leo III crowning Charlemagne king of the Franks in 800.
A current-carrying wire is placed in a uniform magnetic field, as shown below. A current-carrying wire is placed in a uniform magnetic field, as shown below.
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: Prone Position

For a complete list of videos, visit our video library