Q.2

1. Complete the missing numbers in Table 1 below. (5 marks)
2. What is the market capitalisation of the company (2 marks)
3. Give two reasons as to why the share price increases over time? (2 marks)

Table 1: Company Financing Strategy

	Founders Issue	Start up	Round 1	Round 2	Float	Post Float
Month	0	0	12	24	36	48
Issued Shares		1,000,000	1,500,000
New Shares	1,000,000	500,000	500,000	500,000	1,000,000	0
Total Shares	1,000,000
Share Price	$0.05	$0.50	$1.00	$2:00	$5:00	$8:00
Post-funding Valuation
Funds Raised
Pre-funding Valuation	$0.00
Cumulative Funds Raised

17. Complete the missing numbers in Table 2 below. (6 marks)

Table 2: Share Structure

	Shares on Issue	Percentage Holding (months)				Value ($)
	Final	0	12	24	36	48
Founders	700,000	46.7				5,600,000
CEO	100,000	6.7
COO	100,000	6.7
CSO	100,000	6.7
Investors - Private	500,000	33.3
Venture Capital Round 1	500,000
Venture Capital Round 2	500,000
Public Float	1,000,000
Total		100

Please note: The numbers in the first column (0 months) have been rounded (e.g. 46.66 to 46.7) and therefore the total will not always be exactly 100, as with this case where the total is actually 100.1.