Use the Information for the Question(s)below

Use the information for the question(s) below.
You founded your own firm three years ago.You initially contributed $200,000 of your own money and in return you received 2 million shares of stock.Since then,you have sold an additional 1 million shares of stock to angel investors.You are now considering raising capital from a venture capital firm.This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-The post-money valuation of your firm is closest to:

A) $12.5 million.
B) $5.2 million.
C) $10.0 million.
D) $5.0 million.

Correct Answer:

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