Total after-the-money valuation of the firm

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Reference no: EM133253514

Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $1,854,400 to support its expansion plans. A venture capitalist is prepared to provide the cash in return for a 40% holding in the company. Under the plans for the investment, the VC will hold 24,400 shares in the company and the two entrepreneurs will have combined holdings of 36,600 shares.

Note: Enter your answer in dollars not millions.

1. What is the total after-the-money valuation of the firm?

2. What value is the venture capitalist placing on each share?

Reference no: EM133253514

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