Benjamin Garcia's start-up business is succeeding, but he needs $208,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $832,000 and the angel has agreed to invest the $208,000 that is needed. Benjamin presently owns all 41,000 shares in his business. Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant. What is a fair price per share? Do not round intermediate calculations. Round your answer to the nearest cent. How many additional shares must Benjamin sell to the angel? Do not round intermediate calculations. Round your answer to the nearest whole number. shares

Benjamin Garcia's start-up business is succeeding, but he needs $208,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $832,000 and the angel has agreed to invest the $208,000 that is needed. Benjamin presently owns all 41,000 shares in his business. Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant. What is a fair price per share? Do not round intermediate calculations. Round your answer to the nearest cent. How many additional shares must Benjamin sell to the angel? Do not round intermediate calculations. Round your answer to the nearest whole number. shares

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 3P: Benjamin Garcia’s start-up business is succeeding, but he needs $200,000 in additional funding to...

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