What is the angel investor returns

Assignment Help Finance Basics
Reference no: EM133062756

Mary has started a media firm with the financial support of her friends and family. A few months after the establishment, she receives a $200,000 check from an angel investor at a post-money valuation of $1 million. After receiving the funding from the angel investor, Mary's media firm becomes profitable, and the firm receives a $15 million investment for an$80 million post-money valuation from a venture capital fund. If the angel investor cashes out of its investment at this valuation, what is the angel investor's returns?(Show all your work)

Reference no: EM133062756

Questions Cloud

What is the purchase price : The accretion or dilution to EPS Key Market Data Company A is looking to acquire Company B at a 20% premium above Company B's current share price.
Systems development life cycle and the security life cycle : Discuss the differences between the systems development life cycle (SDLC) and the security life cycle.
Calculate the expected return for holding : An investor buys 1 share of ABC Ltd at the price of $30 on December 1, 2021. The firm is not expected to pay any dividends. Consider the following four possible
What is the net present value of accepting the special order : X Company's regular profits will fall by an estimated $8,500 in each of the next four years. Assuming a discount rate of 7%, what is the net present value
What is the angel investor returns : Mary has started a media firm with the financial support of her friends and family. A few months after the establishment, she receives a $200,000 check from an
What is the free cash flow : If the firm issued $779 of new debt and repaid $1,179 of existing debt, what is the free cash flow to the equity holders (FCFE) of the firm?
Determine the effect of the change : Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2021
Describe the abilene paradox : Using your own words, how would you describe the Abilene Paradox?
What is schumi average daily credit sales : The Schumi Corporation's accounts receivable turnover ratio last year was 4.3 If Schumi has a accounts receivable balane of $90000

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the return the firm should earn given its level of

a manager believes his firm will earn a 16.00 percent return next year. his firm has a beta of 1.23 the expected return

  Value of utilizing customer-centric innovation

What do you believe are the opportunities and the risks to using 'customer-centric' brand strategies??

  Problem on cash purchase of park place corporation

Boardwalk Corporation desires to expand. It is considering a cash purchase of Park Place Corporation for $2,400,000. Park Place has a $600,000 tax loss.

  Calculate the new cash convergence cycle

Firm x has 15 million of sales, two million of inventories, three million of recievables, and 1 million of payables. its cost of goods sold is 80% of sales,

  Finding the net new long-term debt

Suppose Raines Umbrella Corp. paid out $51,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero.

  Purchase one share of common stock

Due to issues that they are having internally, they have decided that they need to raise additional capital. They plan on doing this by issuing $100,000,000

  Calculate the amount she will need to deposit

Your friend is celebrating her birthday and wants to start saving for retirement. She has provided you with the following information:

  Percent change in the market price of the bond

Now, if due to changes in market conditions, the market required YTM suddenly increases by 2% from your calculated YTM, what will be the percent change

  What are key elements that must be defined in a mission

What are key elements that must be defined in a mission statement? What is a good example of a good mission statement?

  Write 400ndash600 words that respond to the following

write 400ndash600 words that respond to the following questions with your thoughts ideas and comments. this will be the

  Why do we record land and land improvements separately

Little King acquires land and an old building across the street from Northwestern State University. Little King intends to remove the old building and build.

  Management accounting case-cayuga cookies inc

Determine how capital budgeting is used in long-term financial decisions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd