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Author Question: The founders and owners of a private company have funded it through the following rounds of ... (Read 29 times)

torybrooks

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on: Jul 9, 2019
The founders and owners of a private company have funded it through the following rounds of investment:

RoundSourcePriceNumber of Shares
Series ASelf$1.00200,000
Series BAngel$1.00300,000
Series CVenture Capital$1.25400,000

The owners decide to take the company public through an IPO, issuing 1 million new shares. Assuming that they successfully complete the IPO, the net income for the next year is estimated to be $5 million. The price of shares is set using average price-earnings ratios for similar businesses of 17.0. What portion of the company will be owned by the angel investor after the IPO?
◦ 16%
◦ 30%
◦ 12%
◦ 22%
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by torybrooks on Jul 9, 2019

jessofishing

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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.
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torybrooks

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Reply #2 on: Jul 9, 2019
Excellent


jessofishing

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Reply #3 on: Jul 9, 2019
Great! Please up vote :D


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