Use the Information for the Question(s)below

question 23

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.
-After the venture capitalist's investment,the post-money valuation of your shares is closest to:

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

Identify the key financial ratios for analyzing a firm's financial health.

Understand the concept and application of breakeven analysis in decision-making.

Recognize the principles and effectiveness of inventory control systems.

Learn about the concept and components of a balanced scorecard.

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Definitions:

Texas Territory

A historical territorial area administered by the United States before Texas became a state in 1845.

Martin Van Buren

The eighth President of the United States (1837-1841), known for his role in the development of the American political party system.

Texas

The second-largest state in the United States by both area and population, known for its significant historical events such as the Battle of the Alamo and rich cultural heritage.