User Account

All Pages

Discounted rate for conversion of notes

Assignment Help Finance Basics
Reference no: EM133121811

Assume in a VC financing event, a target company gets a pre-money valuation of $8 million, the amount invested by the VC investors is $4 million. The principal plus accrued interest on outstanding promissory notes are $2 million, and the discounted rate for conversion of notes is 20%. The shares outstanding on a fully diluted basis prior to the investment is 1 million shares. Based on the pre-money method, the notes can be converted to

Reference no: EM133121811

Questions Cloud

Nominal rate of return : Expected inflation over the project's life is 4% and your company's investors require a real return of 7%. Which of the following statement is true?
Firm weighted average cost of capital : A firm has a cost of equity of 12%, a pre-tax cost of debt of 7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity
Determine the variable cost per mile : Determine the variable cost per mile (nearest tenth of a cent) and the fixed costs per quarter, using the method of least squares
Deconstructive analysis : Composed in classical structure; an introduction section, six body sections (five informative aspects/one solution), and a conclusion (along with a cover page
Discounted rate for conversion of notes : Assume in a VC financing event, a target company gets a pre-money valuation of $8 million, the amount invested by the VC investors is $4 million. The principal
Calculate the effective annual rate for bank : If I have $ 100.000 to invest in 6 different banks with the same annual rate of 6%; but with different frequency of compounding: Bank A annual compounding, Bank
Calculate value change as new value minus old value : Calculate value change as new value minus old value, rounded to the nearest dollar. If the price dropped, the answer is negative, and vice versa.
Prepare the journal entry to record the repurchase of shares : Sahali is incorporated under the CBCA and therefore retired these shares. Prepare the journal entry to record the repurchase of the shares
Rate of return are you earning on policy : Instructions using BA II Plus calculator You just paid $355,000 for an annuity that will pay you and your heirs 11,900 a year forever. What rate of return are y

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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