Beverage company pre-money valuation

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Toronto Beverage Company is about to receive $10,000,000 in new investment from Thomas Suds, a local investor. Toronto Beverage Company estimates that its company is currently worth (before accepting the investment from Thomas) $45,000,000. The company's tax rate is 31% and last year Toronto Beverage Company recorded $100,000,000 in sales and $11,000,000 in profit. Calculate Toronto Beverage Company's pre-money valuation (before it receives the investment from Thomas).

Jeremiah owns half of a company named Snozberry Farms. The company is valued at $350,000. Debbie Biscuit, a local investor is planning to invest an additional $100,000 into the company. After the investment is completed, what percentage of the company will Jeremiah own?

Alan owns 15% of Harry's Fine Foods Company. The company accepts an investment of $100,000 from a third party. After the investment, Alan discovers that he now owns 8.8% of the company. This is an example of what is commonly referred to as

expansion

retention

dilution

inclusion

Reference no: EM132409678

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