Kindly help me with this question general accounting Green Tech Innovations, founded five years ago, has gone through three funding rounds:RoundDateInvestorSeries A Mar. 2009 FoundersShares Share Price ($)850,000 1.25Series B Nov. 2010 Angel Investors 1,250,000 1.75Series C Sept. 2011 Venture Capital 2,500,000 2.75It is now 2012, and the company plans to go public through an Initial Public Offering (IPO). Thecompany plans to issue 65 million new shares.Given:Forecasted 2012 Net Income: $7.8 millionAverage P/E Ratio for Recent Tech IPOs: 22.6Required:Calculate the projected IPO price per share.

Step 1: Define Projected IPO PriceThe Initial Public Offering (IPO) Price is the price at which…

Answered: Green Tech Innovations, founded five…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

ChapterC2: Spatial Technology, Inc.

Section: Chapter Questions

Problem kA

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Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Price ($) 0.70 Round Series B Series C Series D 2.00 3.50 Number of Shares 1,100,000 600,000 500,000 a. What is the pre-money valuation for the Series D funding round? b. What is the post-money valuation for the Series D funding round?
4
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $1,000,000 and received 12 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 18% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 18% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)? a. How many shares must the venture capitalist receive to end up with 33% of the company? What is the implied price per share of this funding round? The venture capitalist will receive million shares. (Round to three decimal places.) The implied price per share is $ per share. (Round to the nearest cent.) b. What will the value of the…
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.40 million and wants to own 12% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 12% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)?
Compute the total and annual return on the following investment. Two years after paying $2000 for shares in a startup company, you sell the shares for $1700 (at a loss). Question content area bottom Part 1 The total return is enter your response here%. (Do not round until the final answer. Then round to the nearest tenth as needed.)
Compute the total and annual return on the following investment. Three years after paying $3400 for shares in a startup company, you sell the shares for $2100 (at a loss). The total return is %?
Solve correctly
The DupT corporation plans to do a common stock issue to fund its next equity investment project. The market price of the corporation's stock is $ 75 per share. A dividend of $ 5 per share is expected to be paid at the end of the year. The corporation has had an average annual growth of 6%. The issue cost is $ 2.50 per share. Determine the cost of equity capital using Gordon's constant growth method (Gordon Growth Model). You will have to show the counts.
Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.
Masukh
Please provide this question solution general accounting
Q.You are CEO of a high-growth technology firm. You plan to raise $180m to fund anexpansion by issuing either new shares or new debt. With the expansion, you expectearnings next year of $24m. The firm currently has 10m shares outstanding, with a priceof $90 per share. Assume perfect capital markets.a. If you raise the $180m by selling new shares, what will the forecast for next year’searnings per share be?b. If you raise the $180m by issuing new debt with an interest rate of 5%, what willthe forecast for next year’s earnings per share be?c. What is the firm’s forward P/E ratio (i.e., the share price divided by forecastedearnings) if it issues equity? What is the firm’s forward P/E ratio if it issues debt?How can you explain the difference?

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