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Benchmark Capital proposes to invest $20 million in RL Industries for 8 million shares of Series A Preferred Stock. The founders, Ralph Lauren and his wife, Laura Lauren are currently the only shareholders.
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Benchmark Capital proposes to invest $20 million in RL Industries for 8 million shares of Series A Preferred Stock. The founders, Ralph Lauren and his wife, Laura Lauren are currently the only shareholders. Ralph and Lauren each own 5 million shares of RL common stock. Benchmark insists that the company issue an Employee Option Pool equivalent to 15% ownership, post-money. (a) What is the post-money valuation

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Answer:

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Step-by-step explanation:

Post-money valuation refers to the way and method of expressing company or organisation’s value after an investment has been made. This value is equal to the amount of the pre-money valuation and the quantity of new equity.

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Benchmark Capital proposes to invest $20 million in RL Industries for 8 million shares-example-1
Benchmark Capital proposes to invest $20 million in RL Industries for 8 million shares-example-2
User Kek
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