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The founders of a startup company have 5 million shares of common stock. To raise much...

The founders of a startup company have 5 million shares of common stock. To raise much needed capital the company goes through a Series A funding round. The founders expect to raise $2 million from the venture capitalists who in exchange ask for a 25 percent equity stake in the company.

What is the stock price?

How many shares of preferred stock do the venture capitalists receive in exchange for their investment in the company?

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Answer #1

NO OF SHARES ARE ROUNDED TO ZERO DECIMAL

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