CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Shareholders of company X own 100 shares, which is 100% of equity. An investor makes a $10 million investment into a company X in return for 20 newly issued shares. In the second round, an investor agrees to make a $20 million for 30 newly issued shares. After two rounds the initial shareholders dilute their ownership to:
A. 50%
B. 66.7%
C. 80%
Explanation: 100/150 = 66.7%.

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