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:

Foreign Currency

Money or currency used in a country other than one's own.

Physical Commodity

Tangible goods that can be traded, bought, or sold, such as oil, gold, or agricultural products.

Intrinsic Value

The inherent worth of something, regardless of its external market price.

Foreign Exchange Trades

The action of buying and selling currencies on the foreign exchange market, a crucial component for international business operations and investment.