Price Per Share Assignment | Homework For You
An entrepreneur has 2000 shares. An angel invested $1000 for 1000 shares. A new investor would have been willing to invest $500 for 1000 shares if there were no ratchet in the first round (a price of $0.50) per share. So the total value of the venture is $2000 and the new investor would own 25% of the value. At what price per share would the new investor be willing to invest if the first-round investor has a full ratchet?
|A.||$0.10 per share|
|B.||$0.25 per share.|
|C.||$0.50 per share.|
|D.||$1.00 per share.|
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