Sophia Reynolds' start-up business is growing rapidly, but she needs $300,000 in additional funding to support continued expansion. Sophia and an angel investor agree that the business is currently valued at $1,200,000. The investor has agreed to provide the $300,000 needed. Sophia presently owns all 50,000 shares in her business. Determine: 1. A fair price per share 2. The number of additional shares Sophia must sell to the angel investor

Sophia Reynolds' start-up business is growing rapidly, but she needs $300,000 in additional funding to support continued expansion. Sophia and an angel investor agree that the business is currently valued at $1,200,000. The investor has agreed to provide the $300,000 needed. Sophia presently owns all 50,000 shares in her business. Determine: 1. A fair price per share 2. The number of additional shares Sophia must sell to the angel investor

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 3P: Benjamin Garcia’s start-up business is succeeding, but he needs $200,000 in additional funding to...

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Benjamin Garcia’s start-up business is succeeding, but he needs $200,000in additional funding to fund continued growth. Benjamin and an angelinvestor agree the business is worth $800,000 and the angel has agreed toinvest the $200,000 that is needed. Benjamin presently owns all 40,000shares in his business. What is a fair price per share and how many additional shares must Benjamin sell to the angel? Because the stock will besold directly to an investor, there is no spread; the other flotation costsare insignificant.
Can you please solve these general accounting question without use Ai?
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Santana Rey created Business Solutions on October 1, 2021. The company has been successful, and Santana plans to expand her business. She believes that an additional $88,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $88,000 in the business as a common shareholder. Because Santana currently has about $132,000 invested in the business, Cicely's investment will mean that Santana will maintain about 60% ownership and Cicely will have 40% ownership of Business Solutions. b. Santana's uncle Marcello is willing to invest $88,000 in the business as a preferred shareholder. Marcello would purchase 880 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $88,000 on a 8%, 10-year note payable. She would make monthly payments $1,068 for 10 years. Required: 1. Prepare the journal entry to reflect the initial $88,000 investment under each of the options a, b, and c. View transaction list Journal entry…
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