What percentage ownership of import export company

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A company investor wants to invest $2.5 million in the Company Export Import that you have which has been in operation for the past seven months. You do not expect to make a profit until the 5th year, and when your net income is expected to $5,000,000. For Common Stock, Export-Import where comparable companies are currently it is traded on the free market at $50 per share. Net profit export-import last year was $500,000 and the company has 200,000 shares of common stock circulated.

You are asked:

Problem 1: What percentage ownership of your Import Export Company business should you give to a VC firm for a $2.5 million investment?

Problem 2: Based on question 1, give your analysis whether the company should continue cooperation with these investors or you will choose another investment source

Reference no: EM132954426

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