Question: Please answer correctly. Thanks, I will rate 3 Alpha Ventures is conducting valuation of Beta Company. Beta is a technology company. These companies typically trade

Please answer correctly. Thanks, I will rate

3 Alpha Ventures is conducting valuation of Beta Company. Beta is a technology company. These companies typically trade at 15 times earnings. Alpha expects Beta to have earnings of $1 million per year at the point of exit (at the end of year 4). What percentage of the stock must Alpha own if it invests $1,250,000 and expects a 30% compound IRR? If Alpha receives 35,000 shares for its investment, how many shares did the founders of Beta Company own prior to the investment? (5 points)

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