The founders and owners of a private company have funded it through the following rounds...
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The founders and owners of a private company have funded it through the following rounds of investment; The owners decide to take the company public through an IPO, issuing 1 million new shares. Assuming that they successful complete the IPO, the net income for the next year is estimated to be $4 million. The price of shares is set using average price-earnings ratios for similar businesses of 17. What portion of the company will be owned by the angel investor after the IPO? A. 14% B. 19% C. 10% D. 25%
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