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

question 41

Multiple Choice

Simone founded her company using $200,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 400,000 shares of stock to a venture capitalist for $2 million. What percentage of the firm does Simone now own?

• A) 11%
• B) 23%
• C) 38%
• D) 41%