Use the Table for the Question(s)below

question 15

Multiple Choice

Use the table for the question(s) below.
The founders and owners of a private company have funded it through the following rounds of investment:
The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0.
-What portion of the company will be owned by the angel investor after the IPO?

• A)12%
• B)16%
• C)22%
• D)30%
• E)33%

---

Definitions:

Randomly

In a way that lacks any predictable order or plan, often used in the context of selecting samples or assigning participants in experiments.

Chase and Simon

Researchers known for their studies on chess players, contributing to the understanding of expertise and cognitive chunking in memory.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that humans have varied types of intelligences, including linguistic, logical-mathematical, spatial, musical, bodily-kinesthetic, interpersonal, intrapersonal, and naturalist.

Comparative Cognition

studies the similarities and differences in cognitive abilities and processes across different species, aiming to understand how non-human animals perceive, think, and solve problems.