Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 15, Problem 2CQ
Summary Introduction

Pre and Post-Money Valuation: The valuation of any firm is done in two ways pre and post. Pre money valuation is the valuation of company which is done before the company does any investment and post money valuation is the calculation of the value of the company after the investment is done. Pre-money valuation has the value of the previous post-money valuation and post-money valuation is calculated as a total number of shares offered to the new investor multiplied by the price paid by the investor.

To determine:

Valuation of pre and post money.

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