David founds a company and goes through the investment rounds shown below: Round Source Price Number of Shares Class A Self $0.50 400,000 Class B Angel $1.00 500,000 Class C Venture Capital $1.50 300,000 Class D Venture Capital $2.25 400,000 He decides to take the company public through an IPO, issuing 2 million new shares. Assuming that he successfully completes the IPO, the net income for the next year is estimated to be $8 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 15.0. What share of the company will David own after the IPO? Select one: A. 22% B. 16% C. 14% D. 11%
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “David founds a company and goes through the investment rounds shown below: Round Source Price Number of Shares Class A Self $0.50 400,000 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » David founds a company and goes through the investment rounds shown below: Round Source Price Number of Shares Class A Self $0.50 400,000 Class B Angel $1.00 500,000 Class C Venture Capital $1.50 300,000 Class D Venture Capital $2.