Use the Information for the Question(s)below

question 5

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, what percentage of the firm will you own?

• A)66%
• B)65%
• C)63%
• D)50%

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Definitions:

Nonvesicular Basalt

Basalt rock characterized by a solid and dense structure without vesicles, which are small cavities formed by gas bubbles.

Low Content

Refers to materials, information, or substances that are present in minimal amounts.

Ropy Texture

A geological texture characterized by smooth, undulating surfaces, commonly found in pahoehoe lava flows.

Gas Pressure

The force exerted by gas on the walls of its container or anything it comes into contact with.