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 firmdoes Melanie now own?OA. 19%OB. 38%O C. 50%O D. 29%O E. 33%C

To calculate the percentage of ownership we will use the below formula Percentage of the ownership…

Answered: Melanie founded her company using…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Starware Software was founded last year to develop software for gaming applications. The founder initially invested $700,000 and received 9 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 $1.20 million and wants to own 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13% 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 13% of the company? The venture capitalists will receive million shares. (Round to three decimal places.)
5. Please help me to answer this completely. Thank you.
Marty Market owns 200 shares of Light Bulb Utility. The company pays a $6 per share dividend and the share price is $ 156. How many shares would Marty need to sell to create a homemade dividend of $15 per share?
Apple’s share is $150 and Bella, Shin’s puppy, hold a total of 140 shares. If the initial margin is 55%, how much did Bella borrow from one of the kindest brokers, Diego? A. $21,000 B. $11,550 C. $9,450 D. None of the above
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 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 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13% 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)?
Qd 112.
Jolie has an outstanding order with her stock broker to purchase 1,000 shares of every IPO. The current three IPOs are each priced at $16 a share and all started trading this morning. Jolie was allocated 300 shares of IPO A, 100 shares of IPO B, and 1,000 shares of IPO C. IPO A opened at $17 a share this morning and ended the day at $17.50 a share. IPO B opened at $21 a share and finished the day at $23 a share. IPO C opened at $16 a share and ended the day at $14.50 a share. What is Jolie's total profit or loss on these three IPOS as of the end of the day? O a. -$400 O b. -$350 O c. -$200 O d. -$150 O e. -$100
Bob invested 3,000 and borrowed 3,000 to purchase shares in Verizon communications. At the time of his investment Verizon was selling for 47 a share. If bob paid a 30 commission how many shares could he buy if he used only his own money and did not use margin?
Verizon is scheduled to payout a dividends. The details are below. If I own 100 shares, how much will I receive in dividends. 01/07/2021 CASH $0.627
Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So far, your company has gone through three funding rounds: Round Series A Series BAug. 2014 Series C Shares 600,000 1,000,000 2,200,000 Investor Share Price ($) 1.00 2.00 2.50 Feb. 2013 You Angels Venture Capital Sept. 2015 It is now 2016 and you need to raise additional capital to expand your business. You have decided to take your firm public through an IPO. You would like to issue an additional 6.0 million new shares through this IPO. Assuming that your firm successfully completes its IPO, you forecast that 2016 net income will be $7.5 million. a. Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2016 forecasted earnings average 18.7. Assuming that your IPO is set at a price that implies a similar multiple, what will be your IPO price…
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