Office Helpers is a private firm that manufactures and sells Office supplies. The firm has limited capital
Question:
Office Helpers is a private firm that manufactures and sells Office supplies. The firm has limited capital and is estimated to have a value of $80 million with the capital constraints. A venture capitalist is willing to contribute $20 million to the firm in exchange for 30% of the value of the firm. With this additional capital, the firm will be worth $120 million.
a. Should the firm accept the venture capital?
b. At what percentage of firm value would you (as the owner of the private firm) break even on the venture capital financing?
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a If the current owners give up 30 of the firm they will be left with 07120 84m Otherwise they h...View the full answer
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Gauri Hendre
I worked as EI educator for Eduphy India YT channel. I gave online tutorials to the students who were living in the villages and wanted to study much more and were preparing for NEET, TET. I gave tutions for topics in Biotechnology. I am currently working as a tutor on course hero for the biochemistry, microbiology, biology, cell biology, genetics subjects. I worked as a project intern in BAIF where did analysis on diseases mainly genetic disorders in the bovine. I worked as a trainee in serum institute of India and Vasantdada sugar institute. I am working as a writer on Quora partner program from 2019. I writing on the topics on social health issues including current COVID-19 pandemic, different concepts in science discipline. I learned foreign languages such as german and french upto A1 level. I attended different conferences in the science discipline and did trainings in cognitive skills and personality development skills from Lila Poonawalla foundation. I have been the member of Lila poonawalla foundation since 2017. Even I acquired the skills like Excel spreadsheet, MS Office, MS Powerpoint and Data entry.
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