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Give up to the venture capitalist

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(A) You have started a startup eight months ago, and you expect your company to make a profit in year 4 when your company's expected net income to be RM800,000. A venture capitalist has got in touch with you and plans to invest RM500,000 in your company.Your peer, Zet Company which is a comparable firm to your company, is trading at RM1.20 per share. Zet's net income for the recent year is RM400,000, and it has200,000 shares outstanding.

(i) How many percent of ownership would you give up to the venture capitalist?

Reference no: EM133114614

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