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Homework answers / question archive / please answer asap thanks A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 40% return five years from now

please answer asap thanks A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 40% return five years from now

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please answer asap thanks

A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 40% return five years from now. The venture is expected to produce half a million dollars in income per year at year 5. It is known that a similar venture recently produced $1,000,000 in income and sold shares to the public for $20,000,000. What is the percent ownership of our venture that must be sold in order to provide the venture investor’s target return?

   

26.89%

   

53.78%

   

75.94%

   

85.00%

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