Use the Information for the Question(s)below

question 27

Multiple Choice

Use the information for the question(s) below.
You founded your own firm three years ago.You initially contributed $200,000 of your own money and in return you received 2 million shares of stock.Since then,you have sold an additional 1 million shares of stock to angel investors.You are now considering raising capital from a venture capital firm.This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-The post-money valuation of your firm is closest to:

• A)$12.5 million.
• B)$5.2 million.
• C)$10.0 million.
• D)$5.0 million.

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Definitions:

Prior Restraint

Prior restraint refers to government actions that prohibit speech or other expression before it can take place, often deemed unconstitutional in the context of the First Amendment to the United States Constitution.

New York Times

An American newspaper based in New York City with worldwide influence and readership, known for its comprehensive news coverage.

First Amendment

An amendment to the U.S. Constitution that protects freedom of speech, religion, assembly, the press, and the right to petition the government.

Lewd

Obscene or inappropriate behavior, often sexual in nature, that is considered offensive or indecent.