You founded your own firm three years ago. you initially contributed $200,000 of your own money and in return you received 2 million shares of stock. since then, you have sold an additional 1 million shares of stock to angel investors. you are now considering raising capital from a venture capital firm. this venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own?

a) 50%
b) 40%
c) 33%
d) 25%

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.