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The Founder of a Company Issues 200,000 Shares of Stock

question 89

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The founder of a company issues 200,000 shares of stock of series A stock for his own $250,000 investment. He then goes through three further rounds of investment, as shown below: The founder of a company issues 200,000 shares of stock of series A stock for his own $250,000 investment. He then goes through three further rounds of investment, as shown below:   Which of the following is closest to the percentage of the company owned by the founder of the company? A)  25.0% B)  50.0% C)  62.5% D)  68.8% Which of the following is closest to the percentage of the company owned by the founder of the company?


Definitions:

Quantity Supplied

The aggregate quantity of a product or service that suppliers are prepared and capable of selling at a particular price during a defined time frame.

Shortage

A condition where the quantity demanded of a good exceeds the quantity supplied at the market price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.

Equilibrium Quantity

The amount of products or services that are provided and requested at the balance price.

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