Find the value of firm, Delta software was discovered last

Find the value of firm

Assignment Help Finance Basics

Reference no: EM1356814

Delta software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 8 million shares of stock. Delta now needs to raise a second round of capital and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed.

a.How many shares must the venture capitalist receive to end up with 20% of the company? What is the implied price-per-share of this funding round?

b.What will the value of the whole firm be after this investment (the post money valuation)?

Reference no: EM1356814

Questions Cloud

Decisions to maximize stockholders welfare : Suppose you are the president of a large publicly owned company, would you make decisions to maximize stockholders' welfare or your own personal interest?

Swot analysis of the military : How a person conducts a basic SWOT analysis of an organization or department to which a person belongs to.

What is the boats average speed : The locomotive is moving at 25 km/h. The engineer of the high speed train immediately applies the brakes. What must be the magnitude of the resulting constant deceleration if a collision is to be just avoided.

Did we confirm to the customers specifications : were the schedules realistic and did we confirm to the customers specifications?

Find the value of firm : Delta software was discovered last year to develop software for gaming applications. The founder initially invested $800,000 and received eight million shares of stock.

Medicare tied to life expectancy : Explain what are the advantages and disadvantages of this proposition and what do you think would be appropriate?

What is the magnitude of the force on an electron : How much work must be done on the electron to move it to negative plate if it is initially positioned 2.86 mm from the positive plate.

Explain the most likely unintentional consequence : Explain the most likely unintentional consequence of downsizing and / or layoffs in organizations indicating how an organization may avoid these consequences

Health care administration in the hospital setting : Global Nursing Shortage - Show how is the current global nursing shortage going to impact the future of health care administration in the hospital setting?

User Account

All Pages