The Founder of a Company Issues 100,000 Shares of Series

question 102

Multiple Choice

The founder of a company issues 100,000 shares of series A stock for his own $250,000 investment. He then goes through three further rounds of investment, as shown below: What is the post-money valuation for the series D funding round?

• A) $2.27 million
• B) $2.39 million
• C) $2.52 million
• D) $2.77 million

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Definitions:

Counteroffer

A response to an initial offer, modifying its terms, which effectively rejects the original offer and presents a new one for consideration.

Rejection

In contract law, rejection refers to the refusal to accept an offer or a performance that does not conform to the terms of the contract, effectively terminating the offer.

Subject Matter

The specific topic, content, or area of focus of a discussion, study, or document.

Impossibility of Fact

A situation where the completion of a contractual duty or obligation cannot occur due to unforeseen and unavoidable factual circumstances.