You have started a company and are in luck—a venture capitalist has offered to invest. You own 100% of the company with 4.96 million shares. The VC offers $1.12 million for 820,000 new shares. a. What is the implied price per​ share? b. What is the​ post-money valuation? c. What fraction of the firm will you own after the​ investment?

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A:

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A: a. Implied price per share = Amount offered / Number of shares offered

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A: Therefore, the pre-money value is $600,000.