Use the Information for the Question(s)below

question 79

Multiple Choice

Use the information for the question(s) below.
You founded your own firm two years ago. You initially contributed $250 000 of your own money and in return you received 2.5 million shares of stock. Since then, you have sold an additional 1.25 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-After the venture capitalist's investment, the post-money valuation of your shares is closest to:

• A)$12.5 million
• B)$10.0 million
• C)$9.4 million
• D)$8.5 million

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Definitions:

Quantity

A property that can exist as a magnitude or multitude, often measurable and expressed as a number or amount.

Quality

An attribute or a property characteristics of an object, person, or something else.

Quantified Existential

A logical term referring to statements that quantify the existence of some entity or entities in a particular domain.

Open Sentence

An expression or statement that contains one or more variables, which becomes either true or false when specific values are substituted.