You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $120,000 plus the idea for your new product. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $1.05 each. a. How many shares will you need to sell to raise the additional $1,449,000? (Enter your answer in whole numbers, not in millions.) Shares b. What fraction of the firm will you own after the VC investment? (Enter your answer as a percent rounded to 1 decimal place.) Percentage of shares owned %

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $120,000 plus the idea for your new product. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $1.05 each. a. How many shares will you need to sell to raise the additional $1,449,000? (Enter your answer in whole numbers, not in millions.) Shares b. What fraction of the firm will you own after the VC investment? (Enter your answer as a percent rounded to 1 decimal place.) Percentage of shares owned %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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