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ddd [48]
3 years ago
14

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 mil

lion shares of stock. Since then, you have sold an additional 2 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $4 million and would receive 2 million newly issued shares in return. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?
Business
1 answer:
aev [14]3 years ago
5 0

Answer:

28.57%

Explanation:

currently total shares outstanding are:

  • you own 3 million shares
  • angel investors own 2 million shares
  • total shares outstanding 5 million

if the corporation issues 2 million shares more, then the total shares outstanding would increase to 7 million.

The venture capitalist's investment in your firm would represent 2/7 = 28.57% of the firm's total shares.

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Answer:

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Explanation:

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3 0
3 years ago
On January 1, Wei company begins the accounting period with a $35,000 credit balance in Allowance for Doubtful Accounts. On Febr
Genrish500 [490]

Answer:

Wei Company

Journal Entry:

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3 years ago
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Explanation:

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3 years ago
When profit-maximizing firms in competitive markets are earning profits, market demand must exceed market supply at the market e
ella [17]
The correct answer is " new firms will enter the market"
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Answer: I decreases; II decreases; III decreases

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3 years ago
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