The VC fund you manage invested m1 in firm F in exchange for 200,000 shares....
60.1K
Verified Solution
Link Copied!
Question
Accounting
The VC fund you manage invested m1 in firm F in exchange for 200,000 shares.
The total number number of shares before this financing round was 1,000,000.
(a) 3 years later the next financing round happens in which another fund invests
m2 in exchange for 100,000 newly issued shares. Give an estimate of the yearly
return on your initial investment at that point.
(b) 6 years later, the firm goes public by issuing 200,000 new stocks at 50 per
stock. Give an estimate of the yearly return on your initial investment at that
point.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.