The owners decide to take the company public through an IPO, issuing additional 1 million new shares. Assuming that they successfully complete the IPO, the net income for the next year is estimated to be $6 million. The price of shares is set using average price-earnings ratios for similar businesses of 15. What portion of the company will be owned by the angel investor after the IPO

15.79% = 300,000 stocks = $14,210,526

Explanation:

The question is incomplete, you are missing the following:

"The founders and owners of a private company have funded it through the following rounds of investment: Round Source Price Number of Shares Class A Self $1.00 200,000 Class B Angel $1.00 300,000 Class C Venture Capital $1.25 400,000"

total number of outstanding stocks after the IPO = 200,000 + 300,000 + 400,000 + 1,000,000 = 1,900,000

angel investors own 300,000 / 1,900,000 = 0.157895 = 15.79%

price earnings ratio = stock price / earnings per stock

EPS = net income / total outstanding stocks = $6,000,000 / 1,900,000 = $3.1579

15 = stock price / $3.1579

stock price = 15 x $3.1579 = $47.3684

angel investors own 300,000 stocks x $47.3684 = $14,210,526

answer; (15,000)workers each

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )