Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Starware Software was founded last year to develop software for gaming applications. Initially, the founder invested $800,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 20% of the company? What is the implied price per share of this funding round?

b. What will the value of the whole firm be after this investment (the post-money valuation)?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939804

Have any Question? 


Related Questions in Basic Finance

1 what makes a good theory why are theories so important in

1. What makes a good theory? Why are theories so important in behavioral research? 2. What makes a theory falsifiable? What makes a theory tautological? 3. What is a research hypothesis? Why are research hypotheses, rath ...

1 compare the ethical dilemmas faced by behavioral

1. Compare the ethical dilemmas faced by behavioral scientists with those faced by scientists in other scientific fields. What are the particular ethical problems that arise in behavioral science research? 2. Explain why ...

Explain why option traders often use spreads instead of

Explain why option traders often use spreads instead of simple long or short options and combined positions of options and stock ? Suppose that an option trader has a call bull spread. The stock price has risen substanti ...

Compare and contrast the effects of dividends vs stock

Compare and contrast the effects of dividends vs. stock repurchases, the pros and cons of each, and how the managers decide between the two.

At the first meeting of an american history class for new

At the first meeting of an American History class for new freshmen, the professor identifies 10 students who appear to be the most anxious individuals in the class. Based on their observed behaviors, the professor rates ...

In a latin square each treatment condition occurs first one

In a Latin square, each treatment condition occurs first one time, second one time, third one time, and so on. Ideally, every possible sequence of two treatments should also occur exactly one time. For example, if two tr ...

1 suppose that after reading about a recent murder in your

1. Suppose that, after reading about a recent murder in your town, you want to learn more about what causes people to kill. You go to the library and check out a book written by an expert in the field. Explain which meth ...

Sixx am manufacturing has a target debt-equity ratio of 065

Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is the company's WACC?

Does a large bolt-to-joint stiffness ratio increase or

Does a large bolt-to-joint stiffness ratio increase or decrease the possibility of fatigue failure of the bolt and why? Name at least three bolt, thread, or bolt and thread configurations which can improve the fatigue re ...

Assume the following year zero capital investment 6m and

Assume the following: Year Zero: Capital Investment = $6M and Increase in NWC = $.5M; Years 1-4: OCF = $4M; Year 4: Recovery of Earlier Increase in NWC and Cash Flow from Salvage = $2.5M. What are the incremental cash fl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen