4,932 worldwide franchises
Answer:
The projected net income of the proposed investment is $53,200.
Explanation:
Answer:
a. 2.7%
b. From 6 to 9 years
Explanation:
a. The country’s trend rate of growth over this period is computed below:
= Total of growth rate ÷ time period
where,
Total of growth rate is
= 5% + 3% + 4% -1% -2% +2% + 3% + 4% + 6% + 3%
= 27%
And, the time period is 10 years
So, the trend growth rate is
= 27% ÷ 10 years
= 2.7%
b. The expansionary phase of the business cycle is from 6 years to 9 years as the growth rate is increased over this time period plus the growth rate is positive
Answer:
$1,000,000
Explanation:
The fund raised by the company through venture capital is $400,000 in return for 40% holding in the company.
Venture capitalist holds 10,000 shares and it represents 40% of total holdings.
Assume that the total value of firm is x. The venture capitalist will hold 40% of total capital which equals to $400,000. The total value of firm will be
40% * x = 400,000
x = 400,000/40%
x = 400,000/0.4
x = 1,000,000
Hence, the after value of firm will be $1,000,000
