Mr. Smith has some technology and an idea and he attracts an investor. They agree on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mr. Smith has some technology and an idea and he attracts an investor. They agree on three points: they will incorporate the venture, the value of the venture is $1 million, and the investor will put in $300,000. What will the ownership percentage be if the $1 million agreed upon represents (i) pre- money valuation; (ii) post-money valuation. Fill in the following table and show your calculations. $1m pre-money valuation $1m post-money valuation Value Value Entrepreneur Investor Total Mr. Smith has some technology and an idea and he attracts an investor. They agree on three points: they will incorporate the venture, the value of the venture is $1 million, and the investor will put in $300,000. What will the ownership percentage be if the $1 million agreed upon represents (i) pre- money valuation; (ii) post-money valuation. Fill in the following table and show your calculations. $1m pre-money valuation $1m post-money valuation Value Value Entrepreneur Investor Total
Expert Answer:
Answer rating: 100% (QA)
1 Premoney valuation is the value of a company before any external ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Mr Smith owns a small start-up where he will be producing in-house made pharmaceutical products. Mr Smith recently moved from Edmonton, AB to Surrey, BC. He will be setting up his pharmaceutical...
-
If an entrepreneur has an idea for a themed restaurant based on television game shows, is the idea itself eligible for copyright protection? Why or why not?
-
An investor is evaluating a venture capital project that will require an investment of $1.4 million. The investor estimates that she will be able to exit the venture successfully in eight years. She...
-
Damages require one person to pay money as compensation for another persons loss. Damages are therefore a private matter. Since the Charter is part of public law, damages cannot be awarded in...
-
A share of stock with a beta of .75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4%, and the market risk premium is 7%. a. Suppose investors...
-
The figure illustrates the operation of an air lift pump. Compressed air is forced into a perforated chamber to mix with the water so that the specific gravity of the airwater mixture above the air...
-
Based on the following pedigree for a trait determined by a single gene (affected individuals are shown as filled symbols), state whether it would be possible for the trait to be inherited in each of...
-
Three different plans for financing an $80,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount,...
-
Explain bank runs. Discuss the measures that the U.S. took to address the bank runs of the Great Depression, and the implications of those actions.
-
Listed below is a vertical analysis of selected information from the financial statements of five publicly traded Canadian companies: One of the companies included in the vertical analysis above...
-
3. The population in Terre Haute Indiana in 2012 was 61,112 in 2019 the population was 60,622. Clinton Indiana's population in 2012 was 4,800 residents in 2019 4,700 people called Clinton home....
-
The point (2, 3) is on f (x). Find the corresponding coordinates of this point on g(x)=2f(-2x+6) 1.
-
Describe three advantages of using shipping containers what are the recent trends of supply chain in colgate- Palmolive company and what is its financial status.
-
Review targets investments on the balance sheet. Explain the details of the investments based on the amounts and disclosures found in the financial statements. What information does the investment...
-
What is the extent of governmental involvement in the establishment and upkeep of a nation's infrastructure, and how does this contribute to the overall development and sustainability of the...
-
Canada Company issued share capital of 200,000 shares with par value per share of 10. Retained earnings on January 1, 2020 is 3,000,000. During the year: a. The entity reacquired its own shares of...
-
determine the final tax owed cruz has a calculated federal tax of $ 6 5 8 0 , has no children, but has a nonrefundable energy tax credit of $ 1 3 7 0.
-
Can partitioned join be used for r r.A s? Explain your answer
-
Discuss some of the reasons the earnings of German firms tend to be understated compared with the earnings of U.S. firms.
-
Assume that the domestic volatility (standard deviation) of the German stock market (in euros) is 18.2 percent. The volatility of the euro against the U.S. dollar is 11.7 percent. a. What would the...
-
Suppose that there were some statistics about the Swedish krona and the dollar: Based on the linear approximations of the international parity conditions, replace the question marks with appropriate...
-
Fill in the details in the text for minimization with the trial wave function \(R(r)=A /\left(r^{2}+b^{2} ight)\).
-
Write down explicitly the \(4 s\) and \(4 p\) atomic orbital wave functions.
-
Consider the potential \(V=k x^{2}+\alpha|x|^{3}\), and a trial wave function \(\psi(x ; a, b)=|y|^{a} e^{-b y^{2}}\). Find an estimate of the ground state energy (write down the equations for the...
Study smarter with the SolutionInn App