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Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 9 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.40 million and wants to own 28% of the company after the investment is completed.

a.) How many shares must the venture capitalist receive to end up with 28% of the company? What is the implied price per share of this funding round?

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Category:- Basic Finance
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