Benjamin Garcia's start-up business is succeeding, but he needs $198,000 in additional funding to fund...
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Benjamin Garcia's start-up business is succeeding, but he needs $198,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $792,000 and the angel has agreed to invest the $198,000 that is needed. Benjamin presently owns all 35,000 shares in his business. Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant.
What is a fair price per share? Do not round intermediate calculations. Round your answer to the nearest cent.
$ __________
How many additional shares must Benjamin sell to the angel? Do not round intermediate calculations. Round your answer to the nearest whole number.
___________ shares
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