A reality TV show features business owners who try to persuade investors to put money into their companies in exchange for parti
al ownership of the company.
To make a fair deal, the owner estimates the total value of the business and sets the amount of the investment based on the size of the share, as a percentage. For example, an investor could provide $3 million in exchange for 30 percent ownership stake in a company that is worth $10 million.
Abbey owns a company that sells cat toys. She wants an investor to put $100,000 into her company so that she can expand the business.
Which equation correctly relates an investor's share, S (as a percentage), to the total value of Abbey's company, V?
To make a fair deal, the owner estimates the total value of the business and sets the amount of the investment based on the size of the share, as a percentage. For example, an investor could provide $3 million in exchange for 30 percent ownership stake in a company that is worth $10 million.
Abbey owns a company that sells cat toys. She wants an investor to put $100,000 into her company so that she can expand the business.
Which equation correctly relates an investor's share, S (as a percentage), to the total value of Abbey's company, V?
1 answer:
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