Answer:
$2,850,000
Step-by-step explanation:
Data provided in the question:
Investment amount asked for by the company = $950,000
Exchange of equity = 25%
Now,
Equity exchanged = [tex]\frac{\textup{Amount invested}}{\textup{Post money evaluation}}\times100[/tex]
or
Post money evaluation = [tex]\frac{\textup{950,000}}{\textup{25}}\times100[/tex]
or
Post money evaluation = $3,800,000
Therefore,
Implied valuation = Post money evaluation - Amount invested
or
Implied valuation = $3,800,000 - $950,000 = $2,850,000
