You are a venture capitalist that is going to invest $10 million dollars today in a firm that is projected to be worth $100 million four years from today when it is expected to have an initial public offering.If you require a 40% annual return on investments with this kind of risk,then what portion of the equity of the firm should you own after the investment?
A) 10.00%
B) 38.42%
C) 40.00%
D) none of the above
Correct Answer:
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