Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 millionshares of Series A preferred stock. Your company has since been through three additional rounds of financing.Price ($)0.70RoundSeries BSeries CSeries D2.003.50Number of Shares1,100,000600,000500,000a. What is the pre-money valuation for the Series D funding round?b. What is the post-money valuation for the Series D funding round?

Pre-money valuation refers to the value of the equity before taking any type of financing and the…

Answered: Three years ago, you founded your own…

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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Cc. 193.
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 Founder Seed Series A Date Feb. 2020 Aug. 2021 Sept. 2022 Investor Shares Share Price ($) You Angels Venture Capital 5,000,000 1,000,000 4,000,000 1.00 2.00 3.50 Currently, it is 2023 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. You currently have $5.0 million in cash (net of debt), and forecast earnings before interest and taxes of $7.5 million this year. a. Your investment banker advises you that the prices of other recent IPOs have been set such that the enterprise value/EBIT ratios based on 2023 forecasted earnings average 20.0 x. Assuming that your IPO is set at a price that implies…
Find the following for the indicated mutual fund when the given number of shares is bought and sold 1 year later after receiving the distribution shown in the following table. (Round your answers to two decimal places.) Name Shares Bought Shares Sold Distribution NorthCo 300 at $85 300 at $90 $1.15 per share (a) Find the capital appreciation. ____________%(b) Find the yield. _____________%(c) Find the return. _____________%
You purchased 1,000 shares of a mutual fund at an offer price of $13.48 per share. Several months later you sold the shares for $14.62 per share. During the time you owned the shares, the fund paid a dividend of $0.67 per share. What was your return on investment? Round to the nearest tenth. %
Baghiben
Your start-up company needs capital. Right now, you own 100% of the firm with 9.99 million shares. You have received two offers from venture capitalists. The first offers to invest $2.99 million for 1.03 million new shares. The second offers $1.95 million for 500,000 new shares. a. What is the first offer's post-money valuation of the firm? b. What is the second offer's post-money valuation of the firm? c. What is the difference in the percentage dilution caused by each offer? d. What is the dilution per dollar invested for each offer? a. What is the first offer's post-money valuation of the firm? The first offer's post-money valuation will be $. (Round to the nearest dollar.)
Please show work in simple terms, if possible. After 20 years, some shares of stock originally purchased for $600 total were sold for $5,000 total. What was the yield on the investment?
A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital through a rights offering. The company has 2,000,000 outstanding shares of stock with a market value of $55 per share. Cascade would like to raise an additional $15,000,000 in capital through a rights offering. The company will set the subscription price at $25 per new share. How many rights will be required to purchase 30 shares? 300 rights 10 rights 30 rights O 100 rights
A potential investor is willing to provide S500, 000 in first - round financing with the expectation of a 50% annual compound rate of return over the next five years. Founders currently hold 1,000, 000 million shares of stock. The venture is expected to produce $500,000 in net income in year 5. A similar firm with annual net income of $1,000,000 sold shares to the public for $10,000,000. What is the post- money valuation? a. $499, 954 b. $408, 377 c. $658,436 d. $249,977 (Please provide me with the equation for the BA2 Plus calculator method.)
You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusion
13. Alex launched a company with $500K initial investments and 100K shares. Angel X invested $200K through convertible note in a year. Convertible note parameters were: 8.5% coupon yield and 20% discount for conversion at the next round, valuation cap $2mln. In 9 months, a new investment round closed with pre-money valuation $10mln. Angel X converted the note. How many shares did the angel get?
You purchased 1000 shares of a mutual fund at an offer price of $13.88 per share. Several months later you sold the shares for $14.42 per share during the time you owned the shares the fund paid a dividend of $0.61 per share. What was the return on the investment round to the nearest tenth.

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