Susan starts an electric bicycle company with her savings of $200,000. Her new business is successful, and she attracts a $2 million investment from venture capital firm A at a post - money valuation of $5 million. Susan continues to grow her business and meets additional milestones. After seeing that the milestones have been met, venture capital firm A and a new venture capital firm, B, invests a combined $15 million into Susan's electric bicycle firm at a post - money valuation of $40 million. What is Susan' s ownership of the firm after this investment?
Susan starts an electric bicycle company with her savings of $200,000. Her new business is successful, and she attracts a $2 million investment from venture capital firm A at a post - money valuation of $5 million. Susan continues to grow her business and meets additional milestones. After seeing that the milestones have been met, venture capital firm A and a new venture capital firm, B, invests a combined $15 million into Susan's electric bicycle firm at a post - money valuation of $40 million. What is Susan' s ownership of the firm after this investment?
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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Transcribed Image Text:Susan starts an electric bicycle company with
her savings of $200,000. Her new business is
successful, and she attracts a $2 million
investment from venture capital firm A at a post
- money valuation of $5 million. Susan continues
to grow her business and meets additional
milestones. After seeing that the milestones
have been met, venture capital firm A and a new
venture capital firm, B, invests a combined $15
million into Susan's electric bicycle firm at a post
- money valuation of $40 million. What is Susan'
s ownership of the firm after this investment?
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