User Account

All Pages

What is the percent ownership of our venture

Assignment Help Accounting Basics
Reference no: EM133074840

Question - A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 shares held by its founders, and is targeting a 45% per annum return for the next five years. The venture is expected to produce $2,000,000 in income per year at year 5. It is known that a similar venture recently produced $4,000,000 in income and sold shares to the public for $15,000,000.

a. What is the percent ownership of our venture that must be sold in order to provide the venture investor's target return?

b. What is the number of shares that must be issued to the new investor in order for the investor to earn his target return?

c. What is the issue price per share?

d. What is the pre-money valuation?

e. What is the post-money valuation?

Reference no: EM133074840

Questions Cloud

Distribute a case study instruction : Distribute a case study instructions document and accompanying data file to each group
Distinction between competitive and precompetitive : What is your understanding of Nike's distinction between competitive and precompetitive?
Calculate the cash flows generated : Consider a T-bill maturing on 4/15/22 trading at the Bank Discount Rate yBDR = 1.07% for settlement on 10/15/21. Assume a face value of M = 100,000.
Health care teams to exist and coexist without conflict : Given conflicting and diverse interests, how is it plausible for health care teams to exist and coexist without conflict? Explain.
What is the percent ownership of our venture : What is the percent ownership of our venture that must be sold in order to provide the venture investor's target return
Calculate the monthly payment amount : The interest rate is 6% compounded semi-annually. Hint: First calculate the monthly payment amount.
Calculate cash conversion cycle : A company manufacturing tea is studying its cash cycle. Use the following end-of year values from this company to calculate cash conversion cycle
Assess the implications for the management : Assess the implications for the management and the unions that might be involved. Analyze the impact the investigation and ruling might have in the workplace.
What is its duration : A bond pays an annual coupon at a rate of 8.3% and has 3 years to maturity. If it is currently trading at a yield of 5.7%, what is its duration

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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