Use the Table for the Question(s)below

question 49

Multiple Choice

Use the table for the question(s) below.
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:

-What is the post-money valuation for the series D funding round?

• A)$1.89 million
• B)$1.96 million
• C)$2.14 million
• D)$2.24 million
• E)$2.43 million

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Definitions:

Committed Fixed Costs

Long-term fixed costs that an organization has committed to, which are not easily changed, such as lease payments or insurance costs.

Short Term

Referring to a time frame typically less than one year, often relating to immediate goals, financial obligations, or investments.

Variable Cost

Costs that change in proportion with the level of production or business activity, such as materials and labor directly involved in production.

Activity

Refers to any action or task performed within an organization that consumes resources.