Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 10 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.20 million and wants to own 15% of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 15% of the company? What is the implied price per share of this funding round?

The venture capitalist will receive enter your response here million shares. (Round to three decimal places.)

Part 2

The implied price per share is $enter your response here per share.(Round to the nearest cent.)

Part 3

b. What will the value of the whole firm be after this investment (the post-money valuation)? The value of the firm will be $enter your response here

million. (Round to three decimal places.)