ou have a great idea and are raising money to fund your company. Your investment banker convinces you that you can raise $1mm now for 20% of the company. Your family invested $100,000 last year for 25% of the company. You have no revenue and no income yet. What is the updated equity valuation of your company

ou have a great idea and are raising money to fund your company. Your investment banker convinces you that you can raise $1mm now for 20% of the company. Your family invested $100,000 last year for 25% of the company. You have no revenue and no income yet. What is the updated equity valuation of your company

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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