Simone Founded Her Company Using $200,000 of Her Own Money

question 19

Multiple Choice

Simone founded her company using $200,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 500,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?

• A) $1,200,000
• B) $1,320,000
• C) $2,400,000
• D) $3,600,000

---

Definitions:

Goods Manufactured

The total quantity of finished goods produced by a company over a specific period.

Period Costs

Expenses that are not directly tied to the production process and are instead related to time periods, such as rent and utilities.

Product Costs

The costs directly incurred in the production of goods, including materials, labor, and manufacturing overhead.

Goods Manufactured

The total value of all finished goods that were produced by a company during a specific period.