You Founded Your Own Firm Three Years Ago

question 88

Multiple Choice

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 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 4 million newly issued shares in return. After the venture capitalist's investment, the post-money valuation of your shares is closest to ________.

• A) $2.5 million
• B) $6.3 million
• C) $2.0 million
• D) $1.3 million

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Definitions:

Hospital Gown

A loose, open-back garment worn by patients during a hospital stay or medical examination, designed for easy access by healthcare providers.

Skin Care

Practices that support skin integrity, enhance its appearance, and relieve skin conditions through cleansing, moisturization, and protection from harmful UV rays.

Unconscious Child

A child who is not awake and unable to respond to stimuli.

Pressure Reduction

Strategies or devices designed to decrease pressure on certain parts of the body, often to prevent pressure ulcers or sores.