Melanie founded her company using $250,000 of her own money, issuing herself 100,000 shares of stock. An angel investor bought an additional 50,000 shares for $350,000. She now sells another 190,000 shares to a venture capitalist for $750,000. What percentage of the firm does Melanie now own? OA. 19% OB. 38% O C. 50% OD. 29% OE 33%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 3PROB
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Melanie founded her company using $250,000 of her own money, issuing herself 100,000 shares of stock. An angel investor bought an additional 50,000 shares for $350,000. She now sells another 190,000 shares to a venture capitalist for $750,000. What percentage of the firm
does Melanie now own?
OA. 19%
OB. 38%
O C. 50%
O D. 29%
O E. 33%
C
Transcribed Image Text:Melanie founded her company using $250,000 of her own money, issuing herself 100,000 shares of stock. An angel investor bought an additional 50,000 shares for $350,000. She now sells another 190,000 shares to a venture capitalist for $750,000. What percentage of the firm does Melanie now own? OA. 19% OB. 38% O C. 50% O D. 29% O E. 33% C
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