The Founder of a Company Issues 100,000 Class a Preference

question 64

Multiple Choice

The founder of a company issues 100,000 Class A preference shares for his own $250,000 investment. He then goes through three further rounds of investment, as shown below: $$\begin{array} { l c c } \text { Round } & \text { Price } & \text { Number of Shares } \\\hline \text { Class B } & \$ 2.50 & 200,000 \\\text { Class C } & \$ 2.75 & 300,000 \\\text { Class D } & \$ 2.80 & 200,000\end{array}$$ Which of the following is closest to the percentage of the company owned by the founder of the company?

• A) 25.0%
• B) 42%
• C) 12.5%
• D) 37.5%

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