A founder finds it difficult to raise capital so when he brings in his first outside investor, the investor obtains a full ratchet provision on his equity investor who invests $400000 for 400000 shares of the company. The founder holds 1000000 shares of the company. In the next round of financing the company, the company needs $550000 and the post-money value of the company is $1550000. What is the price per share expected to be in the next round of financing

Q: The Beranek Company, whose stock price is now $25, needs to raise$20 million in common stock.…

A: The formula used to compute number of shares is as follows:

Q: Executive Chalk is financed solely by common stock and has outstanding 25 million shares with a…

A: Outstanding Shares = 25 Million Market price = 10 Debt = 160 million A. The announcement will not…

Q: ity stake equation, if a business owner neeeded to raise $250,000 in equity and the company is worth…

A: The highest rate of growth that a firm may achieve without raising more stock or taking on new debt…

Q: Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Mrs. Kate Sawyer establishes a company with $220,000 of cash. $190,000 of this cash amount is paid…

A: Total Assets=Total current assets+Total non current assets

Q: The startup management is looking to raise venture capital. The pre-money valuation is $10,000,000…

A: i) Post valuation money refers to the amount of money which includes financing from outside .It…

Q: Jasmine Flowers (JF) must raise $345 million for its future expansion.  To do so, JM expects to…

A: Hi, since you have posted multiple question, I will answer the first one as per the guidelines.…

Q: What profit or loss did Security Brokers incur if the issue were sold to the public at $8 / share?…

A: Underwriting refers to the contract or agreement between the two parties; one is company and second…

Q: .Mr. Wise Sapi invested 50M in the common shares of Profitable Ventures, Inc. What if the guaranteed…

A: Prevailing Market Price means the actual purchase price of the Stock in the open market.

Q: The firm you founded currently has 13 million shares, of which you own 6 million. You are…

A: Initial public offerings: It is the process of issuing the shares of private companies in the public…

Q: Fishwick Enterprises has 222,500 shares outstanding, half of which are owned by Jennifer Fishwick…

A: There are 222,500 shares outstanding. Half shares are owned by Jennifer Fishwick & the rest of…

Q: Marseille Manufacturing (MM) is considering an IPO.  MM currently has 13 million shares outstanding…

A: The question is related to calculation of percentage of ownership after IPO. The same will be…

Q: The firm you founded currently has 14 million shares, of which you own 8 million. You are…

A: Given: Total shares = 14 million Shares owned = 8 million Selling of shares owned = 2 Million…

Q: Starware Software was founded last year to develop software for gaming applications. The founder…

A: Venture Capital: Venture Captial refers to an investment raised by a firm from an individual,…

Q: You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment,…

A: Formula: Percentage of shares owned = Total shares purchased / number of shares after investment.…

Q: A group of investors decides to invest RM500,000 in the stocks of three companies. Company D sells…

A:

Q: The Very Big Corporation needs to net $10,000,000 from the sale of common stock. Its investment…

A: Firm is required to issue sufficient shares so that the issue proceeds can provide, the required…

Q: Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is…

A: No. of shares for the auction = Authorized Shares - Wayne's Holdings - Venture Capitalists -…

Q: ABC Ltd is a small company that wants to expand its business by opening a new branch in different…

A: Cost of preference = PD+MV-NPNMV- NP2* 100

Q: how many stockholders would remain, and what would be the value of their shares

A: The market value of all the shares outstanding in the market is known as Market Capitalization. It…

Q: You have decided to retire and want to sell your shares in a closely held, all equity firm. The…

A: Share repurchase is referred to as a transaction where a company buys back its own shares from the…

Q: n equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple.…

A: Equity return will the difference in investment value initially and value at end (after 3 years).

Q: D Plc is in the process of making a 1 for 4 rights issue. The rights letters have just been sent to…

A: Data given: Rights issue = 1 for 4  No. of existing  shares= 20,000,000 Current market price = K4.50…

Q: Joe Corp is debating raising more capital of some kind. In order to advise them you first need to…

A: In the given question we need to calculate the Weighted Percentages of each type of security for the…

Q: John Thompson, CEO of NewVenture, Inc., seeks to raise $5 million in a private placement of equity…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: You have started a company and are in luck-a venture capitalist has offered to invest. You own 100%…

A: a. Implied price per share = Amount offered / Number of shares offered

Q: The Sullivan Co. needs to raise $66.9 million to finance its expansion into new markets. The company…

A: In order to determine the number of shares that need to be sold, the total proceeds from the sale of…

Q: John Thompson, CEO of WVU, Inc., wants to raise $5 million in a private equity in his early stage…

A: Private equity refers to the amount of funds that are being invested into the business directly by…

Q: Your Company has 100 million of common stock shares outstanding and is planning a 10 million shares…

A: Underwriter can be defined as a firm which helps a company in raising money through the process of…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: The computation of total number of shares after raising venture capital fund is as follows:As par…

Q: Star Corporation, an auto fuel cell maker, is planning a new plant and needs to raise $30 million to…

A: Working note:

Q: Assume that you own 100% of a company worth 12 million dirhams represented by 4 million shares of…

A: Answer: Calculation of your share (in percentage) after the sale of the new shares of stock: Value…

Q: The preferred stock of Gator Industries sells for $35 and pays $2.75% per year in dividends. What is…

A: The preferred stock cost of a corporation is the amount it spends in return for the revenue…

Q: Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick…

A: Total Wealth = Closing price * Number of shares Cost of underpricing shares = [ Closing Price -…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: Answer:The firm will raise $0 and will own ownership of 30.8% in firm.The firm will get nothing in…

Q: You are an entrepreneur that founded your IT company three years ago. You invested $100.000 and…

A: Here, Investment Amount in Series A stock is $100,000 Share of Series A Stock is 5,000,000 Details…

Q: You founded a firm that currently has 10 million shares, of which you own 7 million. You are…

A: it is given that: Total no of share – 10 mil Shares owned- 7 mill IPO – no of shares of shares to be…

Q: FCF Co. has 13,000 shares outstanding and a total market value of $1 million, $340,000 of which is…

A: Equity value = $660000 Number of shares = 13000 Stock dividend = 10%

Q: The Taussig Company, whose stock price is currently $20.50, needs to raise $15 million by issuing…

A: Company requires the amount of $15,000,000. But there will be underwriter's compensation also.…

Q: Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per…

A: The dividend discount model is a method of finding out the current price of a company’s share. It is…

Q: How much cash will the firm receive from its first public offering?

A: We need to calculate cash receive by the firm in two scenarios: 1. Under writer sell 122400 shares…

Q: Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick…

A: Firm issue shares for arrange the funds for firm’s operations. When firm issue particular type of…