Question: 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

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 $1.60 million and wants to own 26% of the company after the investment is completed

a. How many shares must the venture capitalist receive to end up with 26% of the company?

The venture capitalists will receive ? million shares (Round to three decimal places.)

What is the implied price per share of this funding round?

The price is $ ? per share. (Round to the nearest cent.)

b. What will the value of the whole firm be after this investment (the post-money valuation)?

The value of the firm will be ? million.(Round to three decimal places.)

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