You founded your firm with contribution

Assignment Help Financial Management

Reference no: EM131836207

1. You founded your firm with a contribution of $755000, receiving 2500000 shares of stock. Since then, you sold 1500000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $5900000 and would receive 4000000 newly issued shares. If this is the VC's first investment in the company, what is the value of your shares? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000."

2. Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $45 Millions of USDs and earnings of $10 of Millions of USDs. Detox company has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 15 and 0.85 respectively. Estimate the IPO price for Detox Company using the Price/Earnings ratio and assuming that they will issue 22 Million shares."

Reference no: EM131836207

Questions Cloud

Brief example of the coding structure : Describe its roots in XML, the purpose of the language and a brief example of the coding structure - create new content manage site layout

How can markets constrain wholesale fraud : How can markets constrain wholesale fraud? Is there a role for the media? How can society alter the factors that contribute to unethical business decisions?

Determining the measuring distance : What is the difference in meaning between 11 and 11.00 what does that tell you about the measurements involved.

What factors in society led to the development : Look at groups and organizations that have arisen and prospered because of this technology. Are these groups supportive or antagonistic, and why?

You founded your firm with contribution : You founded your firm with a contribution of $755000, receiving 2500000 shares of stock.

Describe the four ps-product-price-place-and-promotion : Describe the four Ps--product, price, place, and promotion--and explain how and why they are important to the organization's success.

What involvement does management need to have to achieve : What involvement does management need to have to achieve buy-in from internal stakeholders?

Discuss any motivational reward systems : What effective strategies do you use in your classroom to increase student motivation? Discuss any motivational reward systems you have used.

What can you use in your daily life : What can you use in your daily life? What had the greatest effect on you? What were you surprised about? SWOT: Strength, Weakness, Opportunities and Threats.

User Account

All Pages