Working

Discounted Terminal Value = (20 x 15)/(1.50^7) = $17.5 million

Req Ownership

= 5 million/17.5 million = 28.5%

No of new shares = 500000/(1-.285)-500000 = 200000 (approx)

Price per new share = 5000000/200000 = $25
Implied Pre money = 500000 x 25 = $12.5 million
Implied Post Money = 700000 x 25 = $17.5 million

Revised
Retention Ratio = (1/(1+.1)(1+.3)) = 70%
Req Current % Ownership = Req Final Ownership/Retention Ratio
= 28.5%/70% = 40.7%
No of new share

= 500000/(1-40.7) 500000 = 343170

Price per new share

= 50000000/343170 = $14.57