You Founded Your Own Firm Three Years Ago

question 14

Multiple Choice

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 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 2 million newly issued shares in return. After the venture capitalist's investment, the post-money valuation of the angel investor's shares is closest to ________.

• A) $12.5 million
• B) $4.0 million
• C) $5.0 million
• D) $2.5 million

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Definitions:

Estrogens

a group of steroid hormones that play a key role in the development and functioning of female reproductive tissues and secondary sexual characteristics.

Peak

The highest point or maximum level of something, often referring to the top of a mountain or the highest level of achievement or performance.

Ovulation

Ovulation is the phase of a female's menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization by sperm.

Gender Dysphoria

A condition where there is discomfort or distress because there is a mismatch between one's biological sex and gender identity.