Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Question
Chapter 23, Problem 5P
a.
Summary Introduction
To determine: The pre-money valuation for the Series D funding round.
Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.
b.
Summary Introduction
To determine: The post-money value for the Series D funding round.
c.
Summary Introduction
To determine: The percentage of firm owned after the last funding round.
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Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million
shares of Series A preferred stock. Your company has since been through three additional rounds of financing.
Price ($)
0.70
Round
Series B
Series C
Series D
2.00
3.50
Number of Shares
1,100,000
600,000
500,000
a. 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?
4
Cc. 193.
Chapter 23 Solutions
Corporate Finance
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