What is the post-money valuation of the company

Assignment Help Financial Management
Reference no: EM13917490

Simone founded her company using $150,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $100,000. She now sells another 500,000 shares of stock to a venture capitalist for $2 million. What is the post-money valuation of the company?

Reference no: EM13917490

Questions Cloud

Equity firm has marginal tax rate : A 100% equity firm has a marginal tax rate of 25 percent. By how much would the firm’s value increase if it issued $5,000,000 in bonds with a 4% coupon and a yield-to-maturity of 3.8%?
What preliminary thoughts do you have on solutions : Prepare a list of observations regarding the information provided in the case. What preliminary thoughts do you have on solutions/ partial solutions to the points you have raised?
Coupon rate-what is the price of the bond : A bond has a coupon rate of 8.5 percent and 7 years until maturity. If the yield to maturity is 7.5 percent, what is the price of the bond?
What is the YTM and The current yield : Rolling Company bonds have a coupon rate of 7.60 percent, 18 years to maturity, and a current price of $1,266. What is the YTM? The current yield?
What is the post-money valuation of the company : Simone founded her company using $150,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $100,000. She now sells another 500,000 shares of stock to a venture capitalist for $2 mill..
What is the current bond price : Aloha Inc. has 5 percent coupon bonds on the market that have 4 years left to maturity. If the YTM on these bonds is 6.32 percent, what is the current bond price?
Job has an 85 percent learning curve : Job has an 85 percent learning curve. Estimate the time that will be needed to complete the fifth unit of the job. The time for the first unit is unknown. However, units 2 through 4 took a total of 28.14 hours to complete.
Calculate her debt payments-to-income ratio : Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1770 per month. Her employer deducts a total of $150 for ..
How many more searches will it take : Repeated requests on the same or similar topic take less and less time, as her log shows How many more searches will it take until the search time gets down to 19 minutes?

Reviews

Write a Review

Financial Management Questions & Answers

  Best estimate of teh remaining life left for eades corp

Eades has 9% annual coupon bonds that are callable and have 18years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,220.35. However, Eades may call the bonds in eight years at a call price of $1,060. Wh..

  What gold futures price per ounce will trigger a margin call

A company enters into a long futures contract to buy 200 ounces of gold for $1,257 per ounce. The initial margin is $4,000 and the maintenance margin is $1,000. What gold futures price per ounce will trigger a margin call? (Margin of error: +/- $1)

  What is its price to book value

Avila Industries has $7.5 million in assets, no preferred stock, and total liabilities of $3 million. There are 3 million shares of common stock outstanding and the stock is selling for $5.25 per share. What is its price to book value?

  Makes minimum monthly payment and makes other charges

Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment and makes no other charg..

  What is the problem with using a constant discount rate

What is the problem with using a constant discount rate for all projects? Explain in the context of both all-domestic and international companies.

  Common stockholders have a residual claim to income

Common stockholders have a residual claim to income. Bondholders may force a corporation into bankruptcy for failure to make interest payments. Common stockholders are legally entitled to some dividend.

  Present the pros and cons or benefit analysis

Develop 3 proposals for your development strategy, which include outsourcing (buy), insourcing (make), or a combination of both. Present the pros and cons or benefit analysis for each of the 3 proposals

  Calculate answer to the nearest penny

You would like to have $43,440for the down payment on a house you plan to buy five years after you graduate. If your investments earn 3.3% APR compounded monthly, how much do you have to invest each month, starting next month, to meet your investment..

  What is the gibson paradox and fisher equation

Show the Interest rate equation and explain all the risk premiums embedded in the equation. What is the Gibson paradox?. What is the Fisher equation?.What is the relationship between these two concepts?

  Inflation protected treasury security-bond matures

Suppose an investor purchases a 10-year inflation protected Treasury security in 2005 for $10,000. How much will the investor collect in 2015 when the bond matures? Suppose an investor purchases $100 of face value of an inflation protected Treasury s..

  About the corporate valuation

Barrett Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends, and it has no plans to pay dividends in the near future. What is an estimate of Bar..

  New basel iii minimum capital requirements are excessive

Some analysts believe that the new Basel III minimum capital requirements are excessive and will reduce bank profitability, ceteris paribus. Summarize these arguments.

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