The Founder of a Company Issues 100,000 Shares of Series

question 70

Multiple Choice

The founder of a company issues 100,000 shares of series A stock for his own $250,000 investment. He then goes through three further rounds of investment, as shown below: Round Price Number of Shares
Series B $2.50 200,000
Series C $2.75 300,000
Series D $2.80 300,000
What is the post-money valuation for the series D funding round?

• A)$2.27 million
• B)$2.39 million
• C)$2.52 million
• D)$2.77 million

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Definitions:

Gluten

A mixture of proteins found in wheat and related grains, which can cause health issues in individuals with celiac disease or gluten sensitivity.

Purge

(1) When referring to charts, to clean out; purge files of those patients who are no longer being seen by the provider. (2) To empty; to cleanse of impurities; clear.

Impurities

Foreign substances or contaminants present within another substance that can affect its purity, quality, or performance.

Scurvy

A disease caused by a lack of vitamin C, characterized by symptoms such as anemia, weakness, and bleeding gums.