Please help me answers the question Read the following article (abridged) from the Financial Times and estimate the valuation loss suffered by investors who participated in the funding round led by Softbank one year ago. Klarna ABKlarna's valuation crashes to under $7bn in tough funding roundSequoia's Michael Moritz says investors are in their bunkers' and prices will recoverKlarna.K.KlarnaKlarna was once Europe's most valuable private fintech company © BloombergSiddharth Venkataramakrishnan in London JULY 11 2022Klarna, once Europe's most valuable private tech company, has had its pricetag slashed from$46bn to $6.7bn at a difficult fundraising that highlights the crash in many tech valuations.Michael Moritz, chair of Klarna and a partner at investor Sequoia, blamed "investors suddenlyvoting in the opposite manner to the way they voted for the past few years". He predicted that"after investors emerge from their bunkers, the stocks of Klarna and other first-rate companies willreceive the attention they deserve”.The $800mn fundraising round, announced on Monday, featured new investors includingMubadala, the sovereign wealth fund of the United Arab Emirates, and the Canada Pension PlanInvestment Board in addition to existing investors such as Sequoia and Commonwealth Bank ofAustralia.Just over a year ago, Klarna was valued at $46bn after a $639mn funding round led by Japan'sSoftBank, the investment group behind a disastrous bet in office-sharing group WeWork. The new"pre-money" valuation, excluding the new cash, is only $5.9bn.

Here discuss about the details of the valuation loss which are incurred in the investment in Klarna…

Answered: Read the following article (abridged)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the investor would receive nothing until then. The value of the coupon showed as $76.19 on the investor's screen. This means that the investor was giving up $76.19 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $76.19 price, what rate was the yield on the Province of Ontario bond? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Rate of return b. Suppose that on February 2, 2017, the security's price was $84.00. If an investor had purchased it for $76.19 a year earlier and sold it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return…
On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the investor would receive nothing until then. The value of the coupon showed as $84.73 on the investor's screen. This means that the investor was giving up $84.73 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $84.73 price, what rate was the yield on the Province of Ontario bond? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Rate of return b. Suppose that on February 2, 2017, the security's price was $89.00. If an investor had purchased it for $84.73 a year earlier and sold it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return…
As an analyst for a domestic equity–income mutual fund, Robert Ass is evaluating Mosah Water Company (MWC), a publicly traded water utility, for possible inclusion in the approved list of investments. Robert Ass is conducting the analysis in mid-2013. Not all countries have traded water utility stocks. In developed economies such as the United States, about 85 percent of the population gets its water from government entities. A group of investor-owned water utilities, however, also supplies water to the public. With a market capitalization of about GH¢327 million as of mid-2013, MWC is among the ten largest publicly traded water utilities. MWC’s historical base is the Middlesex System, serving residential, industrial, and commercial customers in a well-developed area of central business district. Through various subsidiaries, MWC also provides water and wastewater collection and treatment services to areas of southern sectors. Hampered by a decline in earnings during the recent…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS