What is the percent ownership of our venture that must be


A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 40% return five years from now. The venture is expected to produce half a million dollars in income per year at year 5. It is known that a similar venture recently produced $1,000,000 in income and sold shares to the public for $20,000,000. What is the percent ownership of our venture that must be sold in order to provide the venture investor's target return?

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Finance Basics: What is the percent ownership of our venture that must be
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