Suppose that First Meriam decides that Marvin 's shares are worth only $0 80 each The common stock and the number of shareholders are as follows Extract Common stock 1,000,000 Number of Shareholders 10 a How many shares will Marvin need to sell to raise the additional $1 million (Enter your answer ...

To calculate the number of shares Marvin needs to sell and the fraction of the firm Marvins managers ...

Suppose that First Meriam decides that Marvin's shares are worth only $0.80 each. The common stock and

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Question:

Suppose that First Meriam decides that Marvin's shares are worth only $0.80 each. The common stock and the number of shareholders are as follows:

Extract
Common stock	1,000,000
Number of Shareholders	10

a. How many shares will Marvin need to sell to raise the additional $1 million? (Enter your answer in whole number not in millions.)

b. What fraction of the firm will Marvin's managers own after the VC investment? (Enter your answer as a percent rounded to 2 decimal places.)