Simone founded her company using $175,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $125.000 She now sells another 450,000 shares of stock to a venture capitalist for $1.5 million What is the post-money valuation of the company? OA $4,749.999 OB. $1,741,666 OC. $1,583,333 OD. $3,166,666
Simone founded her company using $175,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $125.000 She now sells another 450,000 shares of stock to a venture capitalist for $1.5 million What is the post-money valuation of the company? OA $4,749.999 OB. $1,741,666 OC. $1,583,333 OD. $3,166,666
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 9MC
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Question
![Simone founded her company using $175,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $125.000. She now sells another
450,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?
OA $4,749,999
OB. $1,741,666
OC. $1,583,333
OD. $3,166,666](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d668d29-99fb-4307-b1ee-7fc67010b189%2F43f1d9ca-01d7-4e50-8891-0dceae0453e3%2Fdfcimca_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Simone founded her company using $175,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $125.000. She now sells another
450,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?
OA $4,749,999
OB. $1,741,666
OC. $1,583,333
OD. $3,166,666
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