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Three years ago, you founded Outdoor Recreation, Inc
Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So far your company has gone through three funding rounds:
Round Date Investor. Shares Issued. Share Price ($)
Series A Feb. 2007 You. 500,000. 1.00
Series B. Aug. 2008. Angels 1,000,000. 2.00
Series C. Spt. 2009 Venture Capital. 2,000,000 3.50
Expert Solution
a.
Price per share = EPS *P/E ratio
here,
EPS = Total Earning/ Total number of shares
= 7500000/(500000+1000000+2000000+6500000)
= 7500000/ 10000000
= 0.75
So,
Price per Share = 0.75*20
= 15
b.
Own Holdings = 500000/(500000+1000000+2000000+6500000)
= 5%
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