The pre-money valuation for the Series D funding round. Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

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Answer 1

Question

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

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You are an entrepreneur that founded your IT company three years ago. You invested $100.000 and received 5 million shares of series A stock. Your companyhas been through three additional rounds of financing: Round price number of shares b 0.5 1000000 c 2 500000 d 4 500000 1. What is the Pre-Money Valuation for the series D funding round?2. What is the Post- Money Valuation for the series D funding round?3. Considering that you own the 5 million shares of Serie A round what percentage of the firm you own after serie D round?

You founded your firm with a contribution of $700,000, receiving 1,000,000 shares of stock. Since then, you sold 5,000,000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $7,000,000 and would receive 5,000,000 newly issued shares. What is the post-money valuation? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000.

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…

Answer 2

Question

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

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Answer 3

Question

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Expert Solution & Answer

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Answer 4

Question

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Answer 6

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

Answer 7

Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

Answer 8

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

Answer 9

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

Answer 10

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Answer 11

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 23.1 - Prob. 1CC Ch. 23.1 - Prob. 2CC Ch. 23.2 - Prob. 1CC Ch. 23.2 - Prob. 2CC Ch. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CC Ch. 23.4 - Prob. 1CC Ch. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1P Ch. 23 - What are the advantages and the disadvantages to a...

The pre-money valuation for the Series D funding round. Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

Solution Summary: The author explains the pre-money valuation for the Series D funding round.

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

To determine: The post-money value for the Series D funding round.

To determine: The percentage of firm owned after the last funding round.

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Chapter 23 Solutions

The pre-money valuation for the Series D funding round. Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

Solution Summary: The author explains the pre-money valuation for the Series D funding round.

To determine: The pre-money valuation for the Series D funding round. Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

To determine: The post-money value for the Series D funding round.

To determine: The percentage of firm owned after the last funding round.

Want to see the full answer?

Chapter 23 Solutions

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.