COWLAND Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 12 million shares of stock. COWLAND now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.60 million and wants to own 12% of the company after the investment is completed.

a) How many shares must the venture capitalist receive to end up with 12% of the company? What is the implied price per share of this funding round?

i. The Venture Capitalist will receive ____ million shares ( round to three decimal places)

ii.The implied price per share is $ ___ per share (round to the nearest cent).

b) What will the value of the whole firm be after this investment (the post-money valuation)?

i.The value of the firm will be $____ million. (round to three decimal places)