You have started a company and are in lucklong dash—a venturecapitalist has offered to invest. You own 100% of the company with4.73 million shares. The VC offers $1.14 million for 780,000 newshares.

a. What is the implied priceper? share?

1,140000 / 780,000 = 1.46 per share

b. What is the? post-money valuation?

$1.46 * 5,510,000 shares = $8,044,600

c. What fraction of the firm will you own afterthe? investment?

4,730,000 shares / 5,510,000 shares = 85.8%

Those answers are correct but I do NOT know how can I get5,510,000 in question B. Please tell me all details and formula

Answer rating: 100% (QA)

To calculate the postmoney valuation in question B you need to consider both the number of existing ... View the full answer