At Time 0, a venture capitalist invests one million Euros in a firm and receives...
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Finance
At Time 0, a venture capitalist invests one million Euros in a firm and receives in return 80 percent of the equity of the firm. The only other equity holder is an entrepreneur and the firm has no debt. After a year (at Time 1) the entrepreneurs stock value is 318,750. What was the return on equity for the venture capitalist?
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