Question: Homework: HW Ch23 Question 5, P23-7 (simil... HW Score: 6.67%, 1 of 15 points O Points: 0 of 1 Save Beru.com recently raised $5.3 million

Homework: HW Ch23 Question 5, P23-7 (simil... HW Score: 6.67%, 1 of 15 points O Points: 0 of 1 Save Beru.com recently raised $5.3 million with a pre-money value of $8.9 million. They are seeking to raise another $6.4 million. What is the largest fraction of the firm they can offer and avoid a down round? (Select all the choices that apply.) = = A. Prior round post-money value is $5.3 million + $8.9 million = $14.2 million. Their pre-money value in the new round must exceed this to avoid a down round. B. Prior round post-money value is $6.4 million + $8.9 million = $15.3 million. Their pre-money value in the new round must exceed this to avoid a down round. C. The post-money value in a new financing must be at least $6.4 million + $14.2 million = $20.6 million. So the largest fraction new investors can receive is $6.4 million / $20.6 million = 31.1%. D. The post-money value in a new financing must be at least $5.3 milli + $14.2 million = $19.5 million. So the largest fraction new investors can receive is $5.3 million / $19.5 million = 7.2%. =
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
