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
and received
11
million shares of stock. Starware now needs to raise a secondround of​ capital, and it has identified a venture capitalistwho is interested in investing. This venture capitalist willinvest
$1.60
million and wants to own
13%
of the company after the investment is completed.a. How manyshares must the venture capitalist receive to end up with
13%
of the​ company? What is the implied price per share ofthis funding​ round?
b. What will the value of the whole firm be after thisinvestment​ (the post-money​ valuation)?
Question content area bottom
Part 1
a. How many shares must the venture capitalist receive to end upwith
13%
of the​ company? What is the implied price per share ofthis funding​ round?The venture capitalist will receive
enter your response here
million shares. ​ (Round to threedecimal​ places.)
Part 2
The implied price per share is
​$enter your response here
per share.  ​(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 the firm will be
​$enter your response here
million. ​ (Round to three decimal​ places.)
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