Charlie Ltd recently completed a seasoned equity offering (SEO) where the underwriters charged 9% fees. The shares were offered at a price of $14.25 per share and at close of business on the first day of trading, the shares were trading at $16.00. How much money did the company receive if 5 million shares were sold but 4 million was part of the primary offer?

Tech Innovators Inc., a company specialising in cutting-edge software solutions, is looking to raise capital to expand its operations. The company is considering various types of capital to fund its growth.

At which phase of the business lifecycle is Tech Innovators Inc. most likely to be if it is considering raising capital through venture capital, bank loans, issuing bonds, and equity financing?

Based only on the information in the table below, rank the following companies in likelihood of financial distress from lowest to highest risk.

In the long run, what can be changed to reduce operating risk?

A company wants to go public with an auction mechanism. The bids and demand are in the following table:

If the company wants to raise minimum $100,000 in share capital, what price should it offer? The underwriter fees are 5%.

You are the founder of Sassy Ltd, a young start up company. You put in $200,000 of your money and received 2 million shares. Your company has since been through three additional rounds of financing:  1,000,000 shares issued at $2 per share in Series A; 500,000 shares issued at $3 in Series B and another 600,000 shares at $4 each in Series C.

What is the pre-money valuation for the Series C funding round?

You are the founder of Bide and Co, a young start up company. You put in $200,000 of your money and received 2 million shares. Your company has since been through three additional rounds of financing:  1,000,000 shares issued at $2 per share in Series A; 500,000 shares issued at $3 in Series B and another 600,000 shares at $4 each in Series C

What is the pre-money valuation for the Series B funding round?

Why are venture capital investors more preferred compared to angel investors?