Percentage and Value Dilution Comparison
| Management share
ownership |
80,000 |
|
Investor share purchase |
20,000 |
|
Total shares after purchase |
100,000 |
|
Investor price per share |
$10 |
|
Company book value before investment |
$50,000 |
|
Company book value after investment |
$250,000 |
|
Company per share book value after investment |
$2.50 |
|
Percentage dilution of management (100% to 80%) |
20% |
|
Per share value dilution of investor ($10.00 to
$2.50) |
$7.50 |
|
|
