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Melanie Founded Her Company Using $250,000 of Her Own Money,issuing

Question 25

Multiple Choice

Melanie founded her company using $250,000 of her own money,issuing herself 100,000 shares of stock.An angel investor bought an additional 50,000 shares for $350,000.She now sells another 190,000 shares to a venture capitalist for $750,000.What percentage of the firm does Melanie now own?


A) 33%
B) 19%
C) 29%
D) 50%
E) 38%

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