On April 1, 2014, Maag Halan invests $140,000 of their own money in a new venture. To further help finance the venture, Maag Halan raises $60,000 of additional equity-capital from external investors. Four years after starting the venture, the venture is valued at $270,000. How much is Maag Halan's equity stake worth on this date?
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On April 1, 2014, Maag Halan invests $140,000 of their own money in a new venture. To further help finance the venture, Maag Halan raises $60,000 of additional equity-capital from external investors. Four years after starting the venture, the venture is valued at $270,000. How much is Maag Halan's equity stake worth on this date?
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- Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he then sold 1,000 shares of the common stock for Php 1,800 per share. The remaining 1,000 shares were finally sold for Php 2,000 per share in June 2019. What was Carlos's internal rate of return (IRR) on this investment? Use spreadsheet solution.The company raises $5 million in equity capital by selling new shares of stock in the company to equity investors. The par value of these shares is $100,000. Provide the journal entry that would be necessary to record the transaction.Starware Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 10 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.20 million and wants to own 39% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 39% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)?
- Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 12 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)?Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick and half by her cousin. The two cousins have decided to sell 101,000 shares in an IPO. Half of these shares would be issued by the company to raise new cash, and half would be shares that are currently held by Jennifer Fishwick. Suppose that the shares are sold at an issue price of $50 but rise to $80 by the end of the first day’s trading. Suppose also that investors would have been prepared to buy the issue at $80. a. Percentage of ownership 20 % b. Stock value $4,020,000 c. Number of shares 63,125 d. Total wealth ?? million e. Cost of underpricing shares ?? millionEthelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $1,746,400 to support its expansion plans. A venture capitalist is prepared to provide the cash in return for a 40% holding in the company. Under the plans for the investment, the VC will hold 23,600 shares in the company and the two entrepreneurs will have combined holdings of 35,400 shares. a. What is the total after-the-money valuation of the firm? (Enter your answer in dollars not millions.) b. What value is the venture capitalist placing on each share?
- Wiley Solutions Inc. must raise $15,000,000 to support future growth. If it raises funds by issuing stock, WS must pay an investment banker 5 percent of the total amount issued plus $200,000 in other costs associated with the issue. What total stock value must WS issue to net $15,000,000 after flotation costs expense?AERO Corporation was founded by Mr.Chen. At the beginning of the establishment of AERO Corporation, Mr.Chen had initial shares 10,000 pieces. Mr.Chen wants to expand his business venture with take investors to invest for 5 years. Mr.Chen estimates that if you want reached the terminal value at the end of the fifth year of $ 300,000,000, then investment funds given by investors is $ 15,000,000. Financing from investors will be done as many as two stages, where the second stage is carried out in the third year (in the third years ,second stage investors will invest their funds in AERO Corporation). First stage investors demand a rate of return of 70% while the second stage investors demand rate of return of 50%. Public information shows that competitors of AERO is "SX Corppration" has a market capitalization value of $45,000,000 and obtain net profit of $30,000,000 last year. e. Describe in the form of a pie chart the configuration of Mr.Chen's shareholding and investors as a result of…Abdullah has OMR 5000 to invest in a small business venture. His partner has promised to pay him back OMR 8200 in five years. What is the return earned on this investment? Select one: a. None of these b. 10.39 % c. 12.40 % d. 10.75 % e. 14.50 % Gross working capital refer to the Select one: a. Firms liabilities in total current assets of the enterprise b. Firms investment in total fixed assets of the enterprise c. Firms investment in total Equity of the enterprise d. Firms investment in total current assets of the enterprise e. None of the options
- Three years ago, you founded an outdoor recreation company called EloMax Inc., a retailer specializingin the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So faryour company has gone through three funding rounds: Round Date Investors Shares Share price(GHS) Series A Feb 2016 You 500,000 1.00 Series B Aug. 2017 Angels 1,000,000 2.00 Series C Sept. 2018 Venture Capital Trust Fund 2,000,000 3.50 It is now 2019 and you need to raise additional capital to expand your business. You have decided to takeyour firm public through an Initial Public Offering (IPO). You would like to issue an additional 6.5million new shares through this IPO. Additionally, as part of the IPO you also decide that the timing wasright to cash in on your investment by selling a quarter of your current share-holding in a secondaryoffering. EDC Securities acting as your lead investment banker has set a price of GHS5.3 for the IPO. Ifyour firm successfully…Three years ago, you founded an outdoor recreation company called EloMax Inc., a retailer specializingin the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So faryour company has gone through three funding rounds: Round Date Investors Shares Share price(GHS) Series A Feb 2016 You 500,000 1.00 Series B Aug. 2017 Angels 1,000,000 2.00 Series C Sept. 2018 Venture Capital Trust Fund 2,000,000 3.50 It is now 2019 and you need to raise additional capital to expand your business. You have decided to takeyour firm public through an Initial Public Offering (IPO). You would like to issue an additional 6.5million new shares through this IPO. Additionally, as part of the IPO you also decide that the timing wasright to cash in on your investment by selling a quarter of your current share-holding in a secondaryoffering. EDC Securities acting as your lead investment banker has set a price of GHS5.3 for the IPO. Ifyour firm successfully…Bernie's Mittens is a supplier of bespoke mittens designed keep your hands warm while you sit brooding through a cold outdoor event in the middle of winter. The firm pays a dividend to its shareholders every four months, with each dividend being 1.31.3% larger in size than the previous one. The firm has a cost of equity capital of 25.625.6% per annum (compounded annually) and they have just paid their most recent dividend of $$35.9835.98 to existing investors earlier today. Given the above information, the price per share of Bernie's Mittens should now be $$.(Round your answer to the nearest cent)
