You have bought 1 million shares in a restaurant chain. In this zero-stage investment, your business assets are $110,000 plus your new product idea. Look back at your restaurant chain company. Suppose that when you first approach his friend VC, he decides that his shares are worth only $1.00 each.

Required:

a. How many shares will he need to sell to raise the additional $1,370,000?

b. What fraction of the company will he own after the venture capital investment?

 (Round your answer to 1 decimal.)

Answer rating: 100% (QA)

a To raise 1370000 the restaurant chain needs to sell 1370000 100 per share 1370000 ... View the full answer