Which of the following is describes the saturated market?

A VC investor has invested $5 million in the preferred stock of a venture that is now being acquired for $50 million. The invest

Scorpion4ik [409]

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.

4 0

3 years ago

One of the scarce resources that constrain our behavior is time. each of us has only 24 hours in a day, and we must allocate ou

evablogger [386]

Scarce resources are those resources that have limited availability in combination with greater productive uses. Time is a scarce resource as well as all have limited time in our life. In addition, out of the limited time we have, a significance portion of that time is spent on unproductive tasks such as sleeping, bathing among other tasks. As more and more time is spent on a given activity the opportunity cost of that activity in terms of other activities rises. Opportunity cost in this case is the benefit that a person could have received by involving himself in a given task, but gave up to take up another task.

7 0

3 years ago

Read 2 more answers

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c

nikitadnepr [17]

Answer:

1.-3,120 Favorable variance.

2.$704Unfavorable variance

Explanation:

Material price variance:

Actual price is $0.28

Standard price 0.32

Actual quantity 78,000

Material price variance = (Actual price - Standard price) Actual quantity=

(0.28 - 0.32)*78,000

= (-0.04) 78,000= -3,120 Favorable variance.

2. Material quantity variance:

Actual quantity of material used (78,000 - 27,000) = 51,000

Standard quantity of material for the actual level of production (5,100 toys x 8 microns per toy) =48,800 toys

Standard price per unit of material = $0.32

Material quantity variance = (Actual quantity used - Standard quantity of material for actual level of production) Standard price

= (51,000 - 48,800)* $0.32

= (2,200) $0.32 = $704Unfavorable variance

5 0

4 years ago

Read 2 more answers

A manager recently instituted a required retraining program to attempt to increase output by employees with out any additional i

Vadim26 [7]

Answer:

Nominal labor productivity

Explanation:

Nominal labour productivity because output per worker rises due to increase in human capital. It is also defined as the value of all goods and services produced less the value of any goods or services used in their creation.

7 0

3 years ago

Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 2222 years or as

Wewaii [24]

Answer:

0 i.e. zero

Explanation:

The formula we will us to calculate the cash option payout for formula for calculating the present value (PV) .

Present value (PV) can simply be described as the current value of a future amount or future stream of cash flows given a certain return rate.

To calculate the PV of a future cash flow, we will discount it by using the discount rate.

The formula is provided as follows:

PV = FV/(1 + r)^n ............................................ (1)

Where,

PV = Present Value = ?

r = discount rate = 66% = 0.66

FV = annual future value = $863,636.36

n = number of years = 2222 years

Note that the annual future value calculated by diving the $1919 million by 2222 years and this give us $863,636.36 (i.e. 1,919,000,000 ÷ 2222 = $863,636.36).

Substituting the figures above into equation (1), we obtain:

PV = 863,636.36/(1 + 0.66)^2222

= 863,636.36/(1.66)^2222

= 863,636.36/∞

PV = 0

This is because, the division of any number by infinity is equal to zero. And if we multiply by zero by 2222, it will still give us zero PV.

Therefore, the cash option payout will be zero. It is better the winner take the option of collecting $863,636.36.

5 0

3 years ago