1) Describe the different forms of market efficiency. Include in your description the information sets involved in each form and relationships across information sets and across forms of market efficiency. Also explain the implications for different forms of market efficiency for different kinds of securities' analysts
2) A potential investor is looking for to invest $500,000 in the venture, which presently has 1,000,000 million shares held by its founders, and is targeting the 50% return 5 years from now. Venture is expected to make half a million dollars in income per year at year
3) It is known that similar venture just produced $1,000,000 in income and sold shares to public for $10,000,000.
a) What is the percent ownership of our venture which should be sold in order to give the venture investor’s target return?
b) Determine the number of shares which should be issued to new investor in order for investor to earn his target return?
c) Find out the issue price per share?
d) What is the pre-money valuation?
e) What is the post-money valuation?