Assuming That This Is the Venture Capitalist's First Investment in Your

question 3

Multiple Choice

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

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

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Definitions:

Consumption

The total amount of goods and services consumed by households and organizations within an economy.

Autonomous Consumption

The level of consumption that occurs when income is at zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

The fiscal resources available to households for allocation towards saving and spending post income tax adjustments.

Autonomous Consumption

The portion of consumption spending that does not change with changes in income level, reflecting basic consumption needs.