Answer: $12.5 million
Explanation:
The best payoff the VC investor can get from the acquisition will be:
From the question, we've two options. The first option using the 2x Liquidation Preference will give a payoff of:
= 2 × $5 million
= $10 million
The second option using 25% of Common Shares will give a payoff of:
= 25% × $50 million
= 0.25 ÷ $50 million.
== $12.5 million
Therefore, the best Payoff is $12.5 Million.
Answer:
c. There is an "opportunity cost" associated with using reinvested earnings, hence they are not "free."
Explanation:
When the reinvested earnings are invested that is basically the earnings associated with reinvestment would earn the same like that earned by the investment if not withdrawn and invested.
Let us say for example: Amount invested = $1,000
Return on such investment = $100
Now if such earnings are also reinvested then
Earnings = $110
Now if this $110 is used rather than investing again, then there is the opportunity cost of earning $11 on such reinvestment.
Thus, statement c is correct.
Answer:
The correct answer is the demand has increased.
Explanation:
At the market price of $5/unit, the quantity demanded is 20 units.
Last year at the price level of $4, the quantity demanded was 20 units.
We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.
When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.
Answer: there will be a boost in the effectiveness of the workers and effectiveness utilization of their potentials. This is vital for the growth of the company and for the company to boost its profit and also gain competitive advantage over its competitors.
Explanation:
From the question, we are informed that Rose Holcomb is the CEO of Holcomb Engineering, a small but growing firm and she believes that the talents and abilities of her company’s employees are underutilized and therefore she decided to hire her firm’s first human resource manager who can help her devise more effective human resource strategies.
The likely result of this decision by Rose is that there will be a boost in the effectiveness of the workers and effectiveness utilization of their potentials. This is vital for the growth of the company and for the company to boost its profit and also gain competitive advantage over its competitors.
Answer:
(2). Although her request to telecommute was denied, Lindsay will begin a flextime schedule in two weeks.
Explanation:
The second choice would be the most preferred as it conveys the idea in a formal and precise manner. <u>The complex sentence beginning with the subordinate clause already hints the listener that the key message is yet to come. It helps him/her in understanding the intended message without any confusion</u>. The first sentence fails to create that specificity as it connects two independent ideas which remove the listener's focus from the main idea i.e. 'she will begin a flextime schedule in two weeks.' Thus, option (2) adopts the correct format and sentence structure to deliver the message effectively, efficiently, and precisely.
