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Unformatted text preview: 1.2. 25,000 shares out of 1,000,000 is 2.5% of the company. 2.5% of $40 million is $1 million, however the problem states that you paid $0.10 per share for the shares (or $2,500), so your net gains are $997,500. 1.3. Assuming the new investment is at par, the postmoney valuation is $15 million. 8.0% of $10 million is 5.3% (repeating, of course) of $15 million. 1.4. 5.33% (repeating) of $60 million is equivalent to 8.0% of $40 million, $3.2 million in each case. 1...
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This note was uploaded on 08/31/2011 for the course CSE 91 taught by Professor Staff during the Fall '08 term at UCSD.
 Fall '08
 staff

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