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Simone founded her company using of her own​ money, issuing herself shares of stock. An angel investor bought an additional shares for . She now sells another shares of stock to a venture capitalist for million. What is the​ post-money valuation of the​ company

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Answer:

C) $2,400,000

Step-by-step explanation:

Here is the complete question

Simone founded her company using $200,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 500,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?

A) $1,200,000

B) $1,320,000

C) $2,400,000

D) $3,600,000

company's value = value per share x total shares

Value per share = total purchasing price / total shares sold

$1.5 million / 500,0000 = $3

Total shares = 500,000 + 200,000 + 100,000 = 800,000

company's value = 800,000 x $3 = $2,400,000

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