Question: Using the information below, please answer the following questions about Perry Mason, a startup company. The company needs $ 10 million capital. In your analysis,

Using the information below, please answer the following questions about Perry Mason, a startup company. The company needs $ 10 million capital. In your analysis, assume the valuation date is the end of year 5, projected earnings will in year 5 will be $25 million, and an appropriate price-to-earnings ratio for valuing these earnings is 20 times. Assume that there are 500,000 shares outstanding. The required return for the investors is 50%. (4 points)

What percentage ownership at time 0 should the investors demand for their $ 10 million investment?
What would be the number of new shares issued?
What would be the pre-money and post-money valuation?

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