What is the first offer post-money valuation of the firm

Assignment Help Financial Management
Reference no: EM131346131

Your start-up company needs capital. Right now, you own

100 % 100%

of the firm with


million shares. You have received two offers from venture capitalists. The first offers to invest

$ 3.02$3.02

million for


million new shares. The second offers  

$ 2.03$2.03

million for

461 comma 000461,000

new shares.

a. What is the first offer's post-money valuation of the firm?

b. What is the second offer's post-money valuation of the firm?

c. What is the difference in the percentage dilution caused by each offer?

d. What is the dilution per dollar invested for each offer?

Reference no: EM131346131

Expected cash inflows-what is the projects payback

Project K costs $50,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 12%. What is the project's payback?  Project K costs $40,000, its expected

Sensitivity of value of security to change in market yields

In terms of the following three empirical tendencies, discuss how they are related to the concept of duraiton or sensitivity of the value of a security (or portfolio) to a cha

What is the required return for stock

Target is expected to pay a dividend in year 1 of $2.11, a dividend in year 2 of $4.96, and a dividend in year 3 of $6.24. After year 3 dividends are expected to grow at the r

Consider the multifactor

Consider the multifactor APT. The risk premiums on the factor 1 and factor 2 portfolios are 5% and 3%, respectively. The risk-free rate of return is 10%. Stock A has an expect

How much interest is paid on the loan in first month payment

A company takes out a loan for $150,000 at a nominal interest rate of 8% compounded monthly. The company agrees to pay back the loan in equal monthly payments for 15 years. Wh

Current price of one share of oxygen optimization stock

The next three annual dividends paid by Oxygen Optimization stock are expected to be 5.91 dollars in one year, 6.09 dollars in two years, and 7.56 dollars in three years. The

Principal refers to funds the firm can effectively utilize

Carey Company is borrowing $225,000 for one year at 9.5 percent from Second Intrastate Bank. The bank requires a 15 percent compensating balance. The principal refers to funds

What is the effect interest rate

If you borrow $2,500 from a bank now, at nominal interest rate of i (annual percentage rate, APR) compounded quarterly, and if you pay to the bank a year from now $2,700 what


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd