What fraction of the firm will the vc receive in exchange

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An entrepreneur seeks 4 million form a venture capitalist. they agree that the entrepreneur's venture is currently worth 12 million and that, when the company goes public in an IPO three years hence, it will have an expected market capitalization of 70 million. given the company's stage of development, the VC requires a 40% return on investment. what fraction of the firm will the VC receive in exchange for its 4 million investment?

Reference no: EM13295147

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