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

Author Question: The founders and owners of a private company have funded it through the following rounds of ... (Read 46 times)

torybrooks

  • Hero Member
  • *****
  • Posts: 500
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

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

jessofishing

  • Sr. Member
  • ****
  • Posts: 329
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 29% of students answer this correctly


torybrooks

  • Hero Member
  • *****
  • Posts: 500
Reply #2 on: Jul 9, 2019
Excellent


jessofishing

  • Sr. Member
  • ****
  • Posts: 329
Reply #3 on: Jul 9, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Charles Darwin may be dead and gone but a recent write-in campaign has pitted him against Republican Charles Darwin may be dead and gone but a recent write-in campaign has pitted him against Republican
This slave burial service, painted by John Antrobus in 1860, reflects an inversion of power relation This slave burial service, painted by John Antrobus in 1860, reflects an inversion of power relation
The Stillwater Mining Company The Stillwater Mining Company
George Herbert Mead (1863– 1931) is one of the founders of symbolic interactionism, a major ... George Herbert Mead (1863– 1931) is one of the founders of symbolic interactionism, a major ...
This headache remedy was “guaranteed” by the drug company; 1906. This headache remedy was “guaranteed” by the drug company; 1906.
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: Renin/Angiotensin (water gain from urine & Na ion and water reabsorption)

For a complete list of videos, visit our video library