How many new shares are issued to the VC

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Question - A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, and foresees an exit of $60 million in five years. The exit value includes the $2.0 million investment. There are currently 250,000 shares.

a) What ownership percentage does the VC require to make the investment?

b) How many new shares are issued to the VC?

Reference no: EM132802364

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