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In: Finance

Your​ start-up company needs capital. Right​ now, you own 100% of the firm with 10.4 million...

Your​ start-up company needs capital. Right​ now, you own 100% of the firm with 10.4 million shares. You have received two offers from venture capitalists. The first offers to invest $2.97 million for 1.05 million new shares. The second offers  $1.97 million for 461,000 new shares.

a. What is the first​ offer's post-money valuation of the​ firm?

b. What is the second​ offer's post-money valuation of the​ firm?

c. What is the difference in the percentage dilution caused by each​ offer?

d. What is the dilution per dollar invested for each​ offer?

​(Round to the nearest​ dollar.)

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ROUNDING CONDTIONS ARE NOT MENTIONED FOR OTHER QUESTIONS

BUT I DID SUM EARLIER, IN WHICH FOR LAST QUESTION, THEY TOLD TO ROUND TILL 9 DECIMALS, BUT AS YOU HAVE MENTIONED TO NEAREST DOLLAR, ANSWER = 0 FOR BOTH OFFERS

jeff jeffy answered 2 years ago
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