Finance question
| 13. In 2018, You and your friend from college started a private company. At that time, You decided to keep 7,500 shares and your friend to have 2,500 shares. | (5p) | |||||||||||||||||||
| After one year and half, your sister decided to invest $20,000 for 40% equity stake in your business. | ||||||||||||||||||||
| In November 2020, all shareholders decided to sell 30% of equity in business to another private company for $300,000. The new private company made a counteroffer to take 30% stake into the business for $15,000. | ||||||||||||||||||||
| Structure the deal for the 2 financing rounds and determine the value of the firm at each stage, the % of ownership, no of total shares. | ||||||||||||||||||||
| Please explain what is the best deal for you and your friend after the two financing rounds and all scenarios. Why? Why not? | ||||||||||||||||||||
| Show your formulas and calculations under each scenario and present your solutions below. | ||||||||||||||||||||
