1. You founded your firm with a contribution of $755000, receiving 2500000 shares of stock. Since then, you sold 1500000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $5900000 and would receive 4000000 newly issued shares. If this is the VC's first investment in the company, what is the value of your shares? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000."
2. Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $45 Millions of USDs and earnings of $10 of Millions of USDs. Detox company has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 15 and 0.85 respectively. Estimate the IPO price for Detox Company using the Price/Earnings ratio and assuming that they will issue 22 Million shares."