End of Chapter 17 Questions and Answers

The Company and the Investor are discussing a private placement of shares of Preferred Stock on the following terms: Amount of . Investment: $70,000. Founder’s pledge: $20,000 . Investors: $50,000 (30,000) Type of Security: A Convertible Preferred Stock. Valuation of the Company: Pre-money Valuation: $10,000,000. Valuation of Project: $ 400,000 ................
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