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What percentage of ownership in company will venture need

Assume a venture capitalist requires a 40 percent rate of return per year. If the venture capitalist thinks that a company will be worth $50 million in 5 years, what percentage of ownership in the company will the venture capitalist require today in exchange for a $3 million investment?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What percentage of ownership in company will venture need

Reference No:- TGS0673999

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Interactions with short range forces and scalar particles

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Q : What percentage of ownership in company will venture need

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What percentage of ownership in company will venture need

Reference No:- TGS0673999

Recent Questions Asked Finance Basics

Q : Interactions with short range forces and scalar particles

Q : Explain the cost of capital

Q : Determining the average monthly return

Q : Article-tim hortons

Q : What percentage of ownership in company will venture need

Q : What will be the total relevant cost

Q : Prepare the journal entry to charge the dishonored note

Q : Write differences between futures and forward markets

Q : Nothing is impossible in this world

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