Use the Information for the Question(s)below

question 105

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.
-Suppose you sold the 1.25 million shares to the angel investor for $500 000. What was the post-money valuation of your shares immediately following the angel investor's investment?

• A)$2.0 million
• B)$500 000
• C)$1.0 million
• D)$2.5 million

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Definitions:

25th Percentile

Refers to the value below which 25% of the data in a data set is found.

Ascending Order

Arranging data points or numbers from the smallest to the largest.

Statistics Exam

A formal test or assessment aimed at evaluating a student's understanding and knowledge of statistical concepts and methods.

Outliers

Observations in a dataset that lie at an abnormal distance from other values, often indicating variability in a measurement, experimental errors, or novelty.