Calculate the pre-money and post-money valuations for series

Assignment Help Financial Management
Reference no: EM131553263

In 1999 you invested 2 million dollars in your own small business and gave yourself 0.7 million shares for your investment (there are no other shares outstanding). In 2001 you have a series B financing round where another investor invests 1.8 million dollars for 0.6 million shares. In 2004 you have a series C financing round where another investor invests 2 million dollars for 0.4 million shares.

A) Calculate the pre-money and post-money valuations for the series B (year 2001) and series C(year 2004) financing rounds.

B) What will be your ownership share in 2004 after the series C financing?

Reference no: EM131553263

Questions Cloud

What is the least you could pay to acquire a bill : Assume a face value of $1,000. What is the least you could pay to acquire a bill?
Calculate the total new value of your portfolio : Calculate the total new value of your portfolio if you participate and 100% of shares holders do as well.
Consumer financing for big-ticket items such as autos-homes : what effect would rising rates have upon the following. Consumer financing for big-ticket items such as autos and homes.
What is the unlevered value of your firm : If your firm will have cashflows of 3 million next year and it will grow by 2% per year what is the unlevered value of your firm?
Calculate the pre-money and post-money valuations for series : Calculate the pre-money and post-money valuations for the series B (year 2001) and series C(year 2004) financing rounds.
Calculate the price of my bond in this market : Suppose the current yield for a one-year treasury bond is 2%, Calculate the price of my bond in this market
Common stock and warrants in order to choose best investment : Susan is evaluating the Burton Tool Company’s common stock and warrants in order to choose the best investment.
Annually into life insurance fund : You deposit $7500 annually into a life insurance fund for the next 20 years, at which time you plan to retire.
How much would the employees be loaning the firm for year : Ace Trucking Company pays its employees at the end of each work week. How much would the employees be loaning the firm for a year?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate internal rate of return-composite rate of return

Calculate (a) the internal rate of return (Hint: 20%

  The fund would fail to beat benchmark in one of five year

In a perfectly efficient market, an active strategy mutual fund that charges a 1% fee has about a 47% chance of beating the index net of fee. In a universe of 5,000 funds, how many funds would you expect to beat the index all but once out of the past..

  Enable michele to achieve her investment requirement

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.10 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  What is the undiscounted cash flow in the final year

What is the undiscounted cash flow in the final year of an investment, assuming:

  Is there an arbitrage

Consider an economy with two dates (t=0,1) and at t=1 there are three states. The following three stocks are traded: x1=(10,0,30) x2=(0,20,40) x3=(20,20,0) The t=0 prices of these stocks are given as follows (p1, p2, p3)=(12, 14, 8) Is there an arbit..

  Calculate cost of setting up the butterfly spread position

Use the DerivaGem software to calculate the cost of setting up the butterfly spread position. -  Show that the cost is the same if European put options are used instead of European call options.

  What was the average real return on crash-n-burn stock

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –7 percent, 17 percent, 15 percent, and 10 percent. What was the average real return on Crash-n-Burn’s stock? What was the average nominal ri..

  Ladyday sells shoes on credit to its customers

Ladyday sells shoes on credit to its customers. The company’s total accounts receivable is for 2014is R1,792,725. Ladydays’s total credit sales are R12,346,125 for 2014. What is the Ladyday’s average collection period assuming a 365 day year?

  What is price per share of company stock

Ward Corp. is expected to have an EBIT of $2,500,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $177,000, $109,000, and $127,000, respectively. What is the price per share of the company's st..

  Binomial model to estimate the current value of put option

Suppose that firm Ds shares are currently selling for $38. After six months it is estimated that the share price will either rise to $43.32 or fall to $33.82. Suppose that a European put option with an exercise price of $41 is written today and will ..

  In an agreement to exchange dollars for euros

In an agreement to exchange dollars for euros in 3 months at a price of $.090 per euro, the price is the: Mutual funds which allow shares to be redeemed at any time at a price that is tied to the asset value of the fund are known as: Investment banks..

  What is the smallest possible effective rate of interest

What is the smallest possible effective rate of interest?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd