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# Payoff after stage-2 financing

Enter formulas to solve the requirements of this problem

The payoffs in year 5 to George Pickwick and First Cookham are as follows:

First Cookham buys 2 million shares at \$1

Company value in 5 years
After stage-2 financing
Payoff to: \$2,000,000 \$12,000,000
G. Pickwick FORMULA FORMULA
First Cookham FORMULA FORMULA

First Cookham buys 1 million shares now and invests an additional \$1 million in shares in year 5

Company value in 5 years
After stage-2 financing
\$2,000,000 \$12,000,000
Company value in 5 years before issue of
\$1 million in 2nd stage financing \$1,000,000 \$11,000,000
Price per share FORMULA FORMULA
Number of new shares issued to First Cookham #DIV/0! #DIV/0!
Total shares outstanding #DIV/0! #DIV/0!
Total shares owned by First Cookham FORMULA FORMULA
Percentage of all shares owned by First Cookham FORMULA FORMULA
Percentage of all shares owned by G. Pickwick #DIV/0! #DIV/0!

Payoff to:
First Cookham FORMULA FORMULA
G. Pickwick FORMULA FORMULA

#### Solution Summary

The solution explains how to calculate the payoff subsequent to stage-2 financing

\$2.19