Melanie Founded Her Company Using $250,000 of Her Own Money,issuing

question 64

Multiple Choice

Melanie founded her company using $250,000 of her own money,issuing herself 100,000 shares of stock.An angel investor bought an additional 50,000 shares for $350,000.She now sells another 75,000 shares to a venture capitalist for $600,000.What is the post-money valuation for the company?

• A)$600,000
• B)$1.2 million
• C)$950,000
• D)$1.8 million
• E)$1 million

---

Definitions:

Permanently Restricted Endowment

A type of endowment fund that a donor restricts in perpetuity; the principal cannot be spent, but the investment earnings can be used for designated purposes.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, and bank deposits.

Physical Assets

Tangible or material assets owned by an individual or company, such as buildings, machinery, or land.

Uniform Prudent Management

This term refers to the guidelines and principles for managing nonprofit and trust assets responsibly and prudently, ensuring that they are used effectively to fulfill the organization's mission.