Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 23, Problem 5P
a.
Summary Introduction
To determine: The pre-money valuation for the Series D funding round.
Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.
b.
Summary Introduction
To determine: The post-money value for the Series D funding round.
c.
Summary Introduction
To determine: The percentage of firm owned after the last funding round.
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Students have asked these similar questions
Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million
shares of Series A preferred stock. Your company has since been through three additional rounds of financing.
Price ($)
0.70
Round
Series B
Series C
Series D
2.00
3.50
Number of Shares
1,100,000
600,000
500,000
a. What is the pre-money valuation for the Series D funding round?
b. What is the post-money valuation for the Series D funding round?
Tundra Technologies (TT) was founded two years ago with a $100,000 investment for 2.0 million common shares. TT has since had 3 additional rounds of financing (4 rounds including my $100,000 investment). Round 2 was $2.0 for 1 million shares. Round 3 was for $1.5 million for 0.5 million shares and round 4 was $5 million for 2 million shares. What was the pre-money valuation for round 4 financing?
Select one:
a.
$3.60 million
b.
$8.60 million
c.
$8.75 million
d.
$10.50 million
e.
None of the above.
Tundra Technologies (TT) was founded two years ago with a $100,000 investment for 2.0 million common shares. TT has since had 3 additional rounds of financing (4 rounds including my $100,000 investment). Round 2 was $2.0 for 1 million shares. Round 3 was for $1.5 million for 0.5 million shares and round 4 was $5 million for 2 million shares.
What was the post-money valuation for round 3 financing?
Select one:
a.
$3.60 million
b.
$8.60 million
c.
$8.75 million
d.
$10.50 million
e.
None of the above.
Chapter 23 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 23.1 - Prob. 1CCCh. 23.1 - Prob. 2CCCh. 23.2 - Prob. 1CCCh. 23.2 - Prob. 2CCCh. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CCCh. 23.4 - Prob. 1CCCh. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1PCh. 23 - What are the advantages and the disadvantages to a...
Ch. 23 - Prob. 3PCh. 23 - Suppose venture capital firm GSB partners raised...Ch. 23 - Prob. 5PCh. 23 - Prob. 6PCh. 23 - Prob. 7PCh. 23 - Prob. 8PCh. 23 - Prob. 9PCh. 23 - Prob. 10PCh. 23 - Prob. 11PCh. 23 - Prob. 12PCh. 23 - What is IPO underpricing? If you decide to try to...Ch. 23 - Prob. 14PCh. 23 - Prob. 15PCh. 23 - Prob. 16PCh. 23 - Prob. 17PCh. 23 - Prob. 18PCh. 23 - Prob. 19PCh. 23 - Prob. 20P
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