Use the Table for the Question(s)below

question 65

Multiple Choice

Use the table for the question(s) below.
Jeremy founded a company.He issues 200,000 shares of series A stock for his own $100,000 investment.He then goes through three further rounds of investment,as shown below:

-Which of the following is closest to the percentage of the company owned by the series D investors?

• A)25%
• B)29%
• C)33%
• D)40%
• E)46%

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Definitions:

Closely Held

A business owned by a limited number of shareholders with no public market for its shares.

No-Par Stock

Shares issued without a par value, which means their face value is not fixed in the stock certificate, enabling more flexibility in setting the share prices.

Stated Value

The nominal value assigned to no-par value stock by the company's board of directors, used for accounting purposes.

Legal Capital

The minimum amount of capital that a company is required to maintain as per law, to protect creditors and ensure that the company remains solvent.