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If an Entrepreneur Is Able to Sell a Smaller Percentage

Question 5

Multiple Choice

If an entrepreneur is able to sell a smaller percentage of the firm for the same amount of cash raised,


A) she will have to issue more new shares
B) the pre-money valuation will increase but the post money valuation will decrease
C) the pre-money valuation will decrease but the post money valuation will increase
D) both the pre-money and post money valuation will increase
E) both the pre-money and post money valuation will decrease

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