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serious [3.7K]
3 years ago
14

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $100

,000 plus the idea for your new product. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $0.40 each.
a. How many shares will you need to sell to raise the additional $1,370,000?

b. What fraction of the firm will you own after the VC investment? (Round your answer to 1 decimal place.)
Business
1 answer:
rewona [7]3 years ago
5 0

Answer:

a. 3,425,000 shares

b. 22.60%

Explanation:

The calculations are presented below:

a. The number of shares sold is shown below:

= Additional amount ÷ share worth value

= 1,370,000 ÷ $0.40

= 3,425,000 shares

b. The fraction would be

= Number of shares purchased ÷ Total number of shares after considering the additional amount

= 1,000,000 ÷ 4,425,000

= 22.60%

The total number of shares would be

= 1,000,000 + 3,425,000

= 4,425,000

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A proposed new venture will cost $85,000 and should produce annual cash flows of $30,000, $55,000, $40,000, and $40,000 for Year
elena-14-01-66 [18.8K]

Answer:

2 years

Explanation:

Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows

In the first year, -$85,000  + $30,000 = -$55,000 is recovered

In the second year, -$55,000 + $55,000 = 0

The total amount invested is recovered in the second year

4 0
2 years ago
Ernest is 42 years old and has been out of work for two months. he lost his position as a program manager when his company merge
jok3333 [9.3K]
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3 0
3 years ago
What is ecotourism? Write a short essay that includes the following information:
Lady_Fox [76]

Explanation:

1. For me, ecotourism seeks to protect the natural resources that we have in the present so that future generations have the opportunity to take advantage of them, while promoting social, cultural and economic growth of the local population.  According to other definitions, ecotourism is an environmentally responsible tourist modality. Its purpose is to visit and enjoy relatively unalterable natural areas as well as any cultural manifestation of the present or past, with the active participation of local populations. Ecotourism includes educational and interpretive content and tries to reduce negative impacts on the natural and socio-cultural environment as much as possible.

-<u>The Ministry of Tourism in Mexico defines Ecotourism in the following way: </u>"they are the trips that have the purpose of carrying out recreational activities of appreciation and knowledge of nature through contact with it." From another perspective, it is a tourist product aimed at those tourists who enjoy natural history, and who want to actively support and participate in the conservation of the environment.

-<u>The environmentalist architect and international consultant of Mexican origin, Héctor Ceballos Lascuráin, popularized in 1993 when he was included in the book “Ecotourism. </u>The Potential and the Pitfalls ”:

"Ecotourism is an environmentally responsible tourist modality, consisting of traveling to or visiting natural areas relatively undisturbed in order to enjoy, appreciate and study the natural attractions (landscape, wild flora and fauna) of said areas, as well as any cultural manifestation ( of the present and the past) that can be found there, through a process that promotes conservation, has a low negative environmental and cultural impact and fosters an active and socioeconomically beneficial involvement of local populations. ”

Ecotourism aims to achieve the preservation and maintenance of  natural ecosystems; tourism plays its role as a supplier of oil  economic that directly benefits local residents. Community  will provide their knowledge and services to tourists and they will benefit  economically.

- Ecotourism provides jobs and income to the local population.

-Provide environmental education to tourists.

-Create funds for purchase and supplies for improvement and protection of  natural areas. This is beneficial to attract future tourism.

- Motivates the preservation of the environment and the creation of new  or larger national parks, biosphere reserve, preservation  of forests, recreation areas, beaches and natural attractions.

Third world countries are important recipients of ecotourism. In  Brazil nature trips have become one of the new and more  great markets of economic income of the country. In south-central Africa, the  Rwanda's ecotourism is the third largest source of resources  economic.

6 0
2 years ago
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,0
-Dominant- [34]

Answer:

a) Calculate Roquan’s deduction for qualified business income.

qualified business deduction:

  • 20% of qualified business income AND less than 20% of total income
  • Since Roquan is a single filer, his AGI cannot exceed $213,300.

Roquan's QBI deduction = 20% x QBI = 20% x $90,000 = $18,000

b) Since Roquan's income is higher than $213,300, then he is not allowed any QBI deduction.

4 0
3 years ago
Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp
Lelechka [254]

Answer:

Total deductible organization expenses  is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

= $ 6,611

3 0
3 years ago
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