The Founder of a Company Issues 200,000 Shares of Stock

question 79

Multiple Choice

The founder of a company issues 200,000 shares of stock 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 $2.90 100,000
Which of the following is closest to the percentage of the company owned by the founder of the company?

• A)25.0%
• B)50.0%
• C)62.5%
• D)68.8%

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Definitions:

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