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Business, 31.12.2019 04:31 rhco4760

You have purchased 1 million shares in a restaurant chain venture. at this zero-stage investment, your company's assets are $100,000 plus the idea for your new product. suppose that when you first approach your friendly vc, he decides that your shares are worth only $0.40 each.

a. how many shares will you need to sell to raise the additional $1,370,000?

b. what fraction of the firm will you own after the vc investment? (round your answer to 1 decimal place.)

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