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Unformatted text preview: diluted=F/.85 diluted F=F/.85-44.7% =21.88% 3.) V=$100M V after stock option=$85M Post 1=$15,861.832 Post2-$38,689,122 F1=31.5% F2=7.8% I=$5M I=$3M Y=460,325 shares Pre2=$35,689,122 X-$1,000,000 X2-(X+Y) P=$10.86 per share =1,460,325 Y2=$122,757 P2-$24.44 P2-$24.44 4.) He should bootstrap, while looking for angel investors, and try to raise funds from debt financing until he is able to build a prototype product. He should also specifically seek investors who know about related technology or have expertise in the area. It is often difficult to persuade prospective investors to invest into a company in early stage because of high risk associated in it, and the investors high risk aversion. 4b) Henry should formulate a projected cash flow considering a certain percentage of viability. He should pursue a short term debt at this point with favorable interest rates with or without warrant options on principal and interest....
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