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Founders hold 40 shares. An investor puts in 4 crore for 10 new shares. Post-money valuation is:

A16 crore
B20 crore
C24 crore
D40 crore
Answer & Solution
Correct answer: B. 20 crore
Post-money = 4 x (50 total shares / 10 new shares) = 20 crore, so pre-money is 16 crore.
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