What is the second offers post-money valuation of firm

Assignment Help Financial Management
Reference no: EM131297446

Your start-up company needs capital. Right now, you own 100% of the firm with 9.9 million shares. You have received two offers from venture capitalists. The first offers to invest $2.99 million for 1.05 million new shares. The second offers $1.96 million for 511,000 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?

a. What is the first offer's post-money valuation of the firm? The post-money valuation will be $. (Round to the nearest dollar.)

Reference no: EM131297446

Questions Cloud

Ignore brokerage commissions and margin interest costs : Assume you bought 100 shares of DataPoint for $25 per share, and it is currently selling for $40 per share. Assume the stock evenually declines to $31. Ignore brokerage commissions and margin interest costs. Calculate your percentatge rate of return ..
Financial security that guarantees to pay : Angela is offered to buy a financial security that guarantees to pay $30 every 3 years. The annual interest rate is 9%. Calculate and explain in words all calculations for the following: How much would Angela pay for it today if the first payment wil..
Calculate the mean adjusted abnormal return : Which of the following are inconsistent with the semi-strong form of the efficient market hypothesis?  Suppose a security's mean return is 1.50%. On a particular day, the return on the market is 1.20% while the return on the security is 1.85%. Calcul..
Hedge the foreign currency value of the foreign asset : The basic approach to the use of currency futures is to hedge the foreign currency value of the foreign asset. To accomplish this, managers would sell short currencies in the amount of an asset’s value. buy long currencies in the amount of an asset’s..
What is the second offers post-money valuation of firm : Your? start-up company needs capital. Right now, you own 100% of the firm with 9.9 million shares. You have received two offers from venture capitalists. The first offers to invest $2.99 million for 1.05 million new shares. The second offers $1.96 mi..
Available to pay for their childs college education : Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $ 12,700 per year. On a..
Offered to buy a financial security that guarantees : Angela is offered to buy a financial security that guarantees to pay $30 every 3 years. The annual interest rate is 9%. Calculate and explain in words all calculations for the following: How much would Angela pay for it today if the first payment wil..
What is the impact from your faith : Develop a cause and effect (fishbone) diagram to address everything that impacts your grade in this course. How much is under your control? What is the impact from your faith?
Develop software for gaming applications : Starware Software was founded last year to develop software for gaming applications. The founder initially invested $1,000,000 and received 12 million shares of stock. What will the value of the whole firm be after this investment? (the post-money? v..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the length of the firms operating cycle

ABC Foods has a receivables turnover rate of 15.1, a payables turnover rate of 8.7, and an inventory turnover rate of 12.4. What is the length of the firm's operating cycle?

  The price of a non-dividend paying stock

The price of a non-dividend paying stock is $18 and the price of a 3-month European call option on the stock with a strike price of $20 is $1. The risk-free is 4% per annum, continuously compounded. What should be the price of a 3-month European put ..

  Future investment that you would like to make

Choose a future investment that you would like to make, such as a car or home. State the amount you assume you currently have on hand and the amount of the purchase or down payment. Then determine how much you must save each month before you to make ..

  Use the hamada equation to find harleys unlevered beta

Harley Motors has $8 million in assets, which were financed with $2.4 million of debt and $5.6 million in equity. Harley's beta is currently 0.6 and its tax rate is 40%. Use the Hamada equation to find Harley's unlevered beta, bU.

  Coupon bonds on the market with nine years to maturity

Rau Inc. has 6.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 110 percent of par. What is the YTM?

  Calculate the price of this bond

Suppose you buy a TIPS bond with a 5% coupon rate, 18 months to maturity, pays semiannually, and a YTM of 3.3%. The CPI is currently 275.2. It will increase to 288 in 6 months, to 291 in 12 months, and to 294 in 18 months. Calculate the price of this..

  Firm has issued cumulative preferred stock

A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual dividend. For the past two years, the board of directors has decided not to pay a dividend. the preferred stockholders must be paid prior to paying the common ..

  Signed contract with supplier to purchase goods

A wholesale company has signed a contract with a supplier to purchase goods for $2,000,000 annually. The first purchase will be made now to be followed by 10 more. Determine the contract's present worth at a 7% interest rate.

  Given the vast resources available to mutual fund managers

Given the vast resources available to mutual fund managers, these managers on average have generally:

  In a hypothesis test-the test statistic was calculated

In a hypothesis test, the test statistic was calculated to be 2.76. The rejection region is -2.33

  What EAR are customers actually paying

A check---cashing store is in the business of making personal loan to walk---up customers. The store makes only one---week loans at 7.5 percent interest per week. What APR must the store report to its customer? What EAR are customers actually paying?

  Compensation package is unaffected by the profits

Explain how agency costs might be found within a firm whose CEO owns no shares in the firm and whose compensation package is unaffected by the profits (cash or accounting profits) of the firm.

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