1. Simone founded her company using $100,000 of her own? money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $50,000. She now sells another 400,000 shares of stock to a venture capitalist for $2 million. What percentage of the firm does Simone now? own?

A. nbsp 33 33?% B. nbsp 37 37?% C. nbsp 10 10?% D. nbsp 20 20?%

2. The risk-free rate is 4%; the market risk premium is 8%. KLL Company’s stock has a beta of 1.5. The last dividend was $4 per share. The dividend is expected to grow at 5%. What is the expected price of the stock in four years?

a. 48.31

b. 52.32

c. 46.41

d. 50.55