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ipn [44]
3 years ago
6

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company’s assets are $110

,000 plus the idea for your new product. Look back at your restaurant chain venture. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $1.00 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:
Drupady [299]3 years ago
3 0

Answer:

(a) 1,370,000 shares

(b) 42.19%

Explanation:

Given that,

Shares in a restaurant chain venture = 1,000,000 shares

Price of each share = $1.00

(a) To raise the additional $1,370,000:

Shares will you need to sell:

= Additional amount ÷ Price of each share

= $1,370,000 ÷ $1.00

= 1,370,000 shares

(b) No. of Shares After investment:

= Shares need to sell + Shares in a restaurant chain venture

= 1,370,000 + 1,000,000

= 2,370,000 shares

Therefore, the fraction of the firm will you own after the VC investment:

= (Shares in a restaurant chain venture ÷ No. of Shares After investment) × 100

= (1,000,000 ÷ 2,370,000) × 100

= 0.4219 × 100

= 42.19%

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Answer:

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Explanation:

Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:

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4 0
3 years ago
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Nitella [24]

To be useful for decision making, information should possess the fundamental qualities of relevance and  <u>Faithful representation</u>.

<h3>What is  faithful representation?</h3>

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It is paramount that a company a financial statement is accurate  to what they present in the financial statement  and  should not be compromise.

Therefore To be useful for decision making, information should possess the fundamental qualities of relevance and  <u>Faithful representation</u>.

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7 0
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Troyanec [42]

Answer:

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Explanation:

The journal entry is shown below:

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sergij07 [2.7K]

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Therefore, the correct answer is as given above

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8 0
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