A venture capitalist firm wants to invest $1.5 million in your NYDeli internet venture that you started
Question:
A. Apply the VC method to determine the value of the NYDeli at the end of four years.
B. If venture capitalists want a 40 percent compound annual rate of return on similar investments, what is the present value of your NYDeli venture?
C. What percentage of ownership of the NYDeli dot-com venture will you have to give up to the VC firm for its $1.5 million investment?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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