Question: Let's start by imagining a small company. Before the first round of venture capital financing, its accounting balance sheet shows that it has $100 in
Let's start by imagining a small company. Before the first round of venture capital financing, its accounting balance sheet shows that it has $100 in cash, $100 in operating assets, and $200 in equity. The founders have allocated 100 shares of company stock to themselves, but the company is still entirely private. What is the market value of each share of the founders' stock? $1 $2
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