Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800

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answerhappygod
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Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800

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Starware Software was founded last year to develop software forgaming applications. The founder initially invested $800,000 andreceived 11 million shares of stock. Starware now needs to raise asecond round of​ capital, and it has identified a venturecapitalist who is interested in investing. This venture capitalistwill invest $1.60 million and wants to own 13% of the company afterthe investment is completed.
a. How many shares must the venture capitalist receive to end upwith 13% of the​ company? What is the implied price per shareof this funding​ round?
b. What will the value of the whole firm be after thisinvestment​ (the post-money​ valuation)?
Question content area bottom Part 1
a. How many shares must the venture capitalist receive to end upwith 13% of the​ company? What is the implied price per shareof this funding​ round?The venture capitalist will receiveenter your response here ___ million shares. ​ (Round to threedecimal​ places.)
Part 2
The implied price per share is ​$enter your response here pershare.  ​(Round to the nearest​ cent.)
Part 3 b. What will the value of the whole firm be after thisinvestment​ (the post-money​ valuation)? The value of thefirm will be ​$enter your response here million. ​ (Round tothree decimal​ places.
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