Simone founded her company using $100,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 200,000 shares for $50,000. She now sells another 450,000 shares of stock to a venture capitalist for $1.0 million. What is the post-money valuation of the company? OA. $2,833,334 OB. $944,445 OC. $1,038,889 OD. $1,888,889

Simone founded her company using $100,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 200,000 shares for $50,000. She now sells another 450,000 shares of stock to a venture capitalist for $1.0 million. What is the post-money valuation of the company? OA. $2,833,334 OB. $944,445 OC. $1,038,889 OD. $1,888,889

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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