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Venture Capital v2 (10p) (Ch 23) You own all of the 550 000 outstanding stocks of the firm that you started a while ago

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Venture Capital v2 (10p) (Ch 23) You own all of the 550 000 outstanding stocks of the firm that you started a while ago. Now you are consider taking on additional capital from a venture capitalist in order to market your product. You've found a venture capitalist that is willing to invest $1.20 million for 55% share in your company. You are planning to issue new shares to sell to the venture capitalist. a. How many shares must you issue and sell to the venture capitalist so that they end up with 55% of your company? Answer in millions, with two decimals (i.e. 0.9, not 900 000). $ millions b. Now assume that you sold 500 000 new shares to the venture capitalist for $1.20 million. What was the Pre-Money Valuation of your firm? Answer in millions, with two decimals (i.e. 1.45, not 1 450 000). $ millions