Assume a venture capitalist requires a 40% rate of return per year. If the venture capitalist thinks

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Assume a venture capitalist requires a 40% rate of return per year. If the venture capitalist thinks that a company will be worth $50 million in five years, what percentage of ownership in the company will the venture capitalist require today in exchange for a $3 million investment?

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Financial Institutions, Markets and Money

ISBN: 978-1119330363

12th edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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