An Investor Offers $150,000 for 30% of the Company

question 3

Multiple Choice

An investor offers $150,000 for 30% of the company.What is the post-money valuation of the company?

• A)$350,000
• B)$500,000
• C)$50,000
• D)It cannot be determined.

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Definitions:

Subsidence

The gradual sinking of the ground's surface, which can occur due to natural processes like the compacting of sediment or human activities such as groundwater extraction.

Gradient

A measure of how one quantity changes or varies over distance or another quantity, often expressed as a slope or rate of incline.

Permeability

An indicator of the ease with which fluids can flow through a material with pores or a rock.

Natural Cement

A type of material formed when certain natural rocks with hydraulic properties are finely ground and then mixed with water, initiating chemical reactions that result in a hardened substance.