1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
What is the main argument for agricultural prices supports
patriot [66]

Answer:

Key Points

Explanation:

The government may artificially increase prices through purchasing a portion of the consumer surplus or artificially increase quantity through offering subsidies to producers. This allows the government control over the established equilibrium in agriculture.

5 0
3 years ago
Bramble Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budge
azamat

Answer:

$93,840

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

October Total budgeted variable selling and administrative expenses=

(0.6 + 1.2 + 0.3 + 0.35) x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=2.45x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$17,640+6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$93,840

Therefore the total budgeted variable selling and administrative expenses for October is $93,840

4 0
3 years ago
Vroom's current formulation includes two different decision trees. one tree is to be used when the manager is primarily interest
SVETLANKA909090 [29]

Helping their employees develop their own decision-making approach.

The two trees are time-driven decisions and development-driven decisions. Sometimes managers just have to take the lead and make a decision quickly and effectively, but in other situations they can take more time and focus on training and developing their employees into effective decision makers.

5 0
3 years ago
A company has 1,000 shares of $50 par value, 4.5% cumulative and nonparticipating preferred stock and 10,000 shares of $10 par v
Kobotan [32]

Answer: $3500

Explanation:

Preferred stock:

Number of shares = 1000

Par value = $50

4.5% cumulative

Common stock:

Number of shares = 10000

Par value = $10

Total first-year cash dividend paid = $1000

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Preferred Stock dividend = 1000 × 0.045 × 50 = $2250

Unpaid dividend from year 1 = $2250 - $1000 = $1250

Year 2 dividend = $2250

Total dividend due in year 2 = $(1250 + 2250) = $3500

3 0
3 years ago
Which sentence best describes how money functions as a "store of value"?
finlep [7]

Answer:

(B) It adds to your purchasing power.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

The three (3) main functions of money all over the world are;

I. Medium of exchange.

II. Unit of account.

III. Store of value.

The sentence which best describes how money functions as a "store of value" is that, it adds to your purchasing power.

Hence, money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.

5 0
3 years ago
Other questions:
  • Tax cuts increase consumer incentive to save. which determinant(s) of aggregate demand cause the change?
    10·1 answer
  • The petty cash fund of $200 for Tomkins Company appeared as follows on December 31, 2014
    10·1 answer
  • When a non-price factor changes--such as technology, expectations, prices of related goods, prices of inputs, or the number of s
    13·1 answer
  • Many managers describe performance appraisal as the responsibility that they like least. Why is this so? What could be done to i
    6·1 answer
  • Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three yea
    6·1 answer
  • David wants to buy a pizza and go to the movies. However, he only has enough money to do one or the other. In order to decide wh
    15·2 answers
  • What is a legal document that outline all the conditions of the bond?
    8·1 answer
  • An advantage of the matrix organization is that it: a.gives top management a useful vehicle for centralization. b.allows its emp
    8·1 answer
  • A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating sched
    15·1 answer
  • Assuming john's parents do not allow him to use any savings. What is the optimal consumption bundle of pizza and funnel cakes? E
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!