Module 1: Numeric Questions
Last updated: 17/08/2025 09:58
The questions are based on or inspired by the following references:
- Berk & DeMarzo, Corporate Finance, 5th ed. (2020)
- Brealey & Myers, Principles of Corporate Finance, 13th ed. (2020)
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⚠️ These exercises are powered by AI-assisted technologies and may contain occasional formatting or logic errors. Please report any issues you encounter so I can improve the experience.
📘 Part 1 (until Midterm)
Module | Chapter | Slides | T/F | MCQ | Numeric | Long |
---|---|---|---|---|---|---|
1 | ch23 | 🎞️ | ✅ | ❓ | 🔢 | 📝 |
Answer the following questions based on the discussions in class.
Post-money valuation and ownership
You founded your company with 0.051 million and received 1 million shares.
You later sold 0.75 million shares to angel investors.
Now a VC wants to invest 3 million in exchange for 2 million shares.
Capital raised and founder dilution
A company raised capital in three rounds (values in millions USD):
Series A: Pre = 3.368, Post = 6.287
Series B: Pre = 38.243, Post = 77.473
Series C: Pre = 132.115, Post = 184.012
Post-money valuation and VC ownership
You founded a firm three years ago. You started with $0.216 million, which gave you 1.235 million shares. You later sold 1.331 million shares to angel investors. Now, a VC firm wants to invest $5.708 million in exchange for 2.705 million new shares.
Valuation and Ownership After Equity Issuance
Erica owns all 4 million shares of her company, CoralTech. A new partner is offering to invest 2.343 million in exchange for 1.5 million shares.
Ownership After Two Funding Rounds
After a Series A round, the founders owned 72.1% of BetaVision.
Then, Series B investors contributed 4.347 million and received 22.3% of the company.
Convertible Note with Discount
Context:
Yara invested in a startup using a convertible note of $1.426 million, with a 20% discount.
When the company raised Series A at $1.16 per share, her note converted at the discounted price.