Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 23, Problem 3P

a.

Summary Introduction

To determine: The number of shares the venture capitalist receives to end up with 20% of the company and the implied price per share.

Introduction: Venture capitalists are investors who provide the capital to start-up business firms or give their support to small companies to expand their business.

b.

Summary Introduction

To determine: The post-money value of the whole firm after investment.

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