Shares outstanding on a fully diluted basis

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Assume in a VC financing, company M's pre-money valuation is $6 million, the amount invested by the VC investors is $4 million. The principal plus accrued interest on outstanding convertible notes is $2 million, and the discounted rate for conversion of notes is 10%. The shares outstanding on a fully diluted basis prior to the investment are 1 million shares. Using the dollar-invested method, the post-money valuation of the company is ________ million.

Reference no: EM133119272

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