An investor offers you $759,282 in exchange for shares of your start-up company. The investor demands an
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Question:
An investor offers you $759,282 in exchange for shares of your start-up company. The investor demands an annual rate of return of 69%, and expect that your IPO will be in 4 years. At that time you expect your firm to have annual income of around $1,839,723 dollars. A similar firm was recently acquired for $18,127,989 dollars. At the time of acquisition, their income was $1,978,426 million dollars per year.
What percentage of your equity should you give to the investor?
Enter your answer as a percentage, without decimals. For example, if your answer is 0.76543, that's 76.543%, which rounds to 77%.
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Posted Date: