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Suppose that First Meriam decides that Marvins shares are worth only $0.80 each. The common...

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Accounting

Suppose that First Meriam decides that Marvins shares are worth only $0.80 each. The common stock and the number of shareholders are as follows:

Extract
Common stock 1,000,000
Number of Shareholders 10

a. How many shares will Marvin need to sell to raise the additional $1.6 million? (Enter your answer in whole number not in millions.)

b. What fraction of the firm will Marvins managers own after the VC investment? (Enter your answer as a percent rounded to 2 decimal places.)

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