Use the Information for the Question(s)below

question 26

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.
-Assuming that this is the venture capitalist's first investment in your firm,the post-money valuation of the angel investor's shares is closest to:

• A)$12.5 million.
• B)$4.0 million.
• C)$5.0 million.
• D)$2.5 million.

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Definitions:

Diversity Training

Educational programs designed to improve interpersonal interactions in a diverse workforce and to promote understanding across different cultures, genders, races, and other backgrounds.

Workforce Diversity

Refers to the inclusion of individuals from various backgrounds, including race, ethnicity, gender, age, religion, ability, and sexual orientation, in the workplace.

Changing Demographics

The variation in the population's size, distribution, age, gender, or ethnicity over time.

Privatization Movement

The process or trend of transferring ownership and management of public sector enterprises or services to private individuals or corporations.