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alukav5142 [94]
3 years ago
12

ethelbert is a young software company owned by two entrepreneurs. It currently needs to raise 400000 to support its expansion pl

ans. A venture capitalist is prepared to provide the cash in return for a 40% holding in the company. Under the plans for the investment, the VC will hold 10,000 shares in the company, and the two entrepreneurs will have combined holdings of 15,000 shares. What is the total after-the-money valation of the firm.
Business
1 answer:
alexgriva [62]3 years ago
6 0

Answer:

$1,000,000

Explanation:

The fund raised by the company through venture capital is $400,000 in return for 40% holding in the company.

Venture capitalist holds 10,000 shares and it represents 40% of total holdings.

Assume that the total value of firm is x. The venture capitalist will hold 40% of total capital which equals to $400,000. The total value of firm will be

40% * x = 400,000

x = 400,000/40%

x = 400,000/0.4

x = 1,000,000

Hence, the after value of firm will be $1,000,000

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20kg of beans at #150/kg are mixed with 15kg of beans at #180/kg , if the mixture is sold at #200/kg , calculate the percentage
pychu [463]

Answer: 18.6%

Explanation:

Cost of 20 kg of beans at #150 per kg is:

= 20 * 150

= #3,000

Cost of 15 kg of beans at #180 per kg is:

= 15 * 180

= #2,700

Total cost is:

= 3,000 + 2,700

= #5,700

Mixing both beans results in a weight of:

= 20 + 15

= 35 kg

This 35kg is sold at #200 per kg so the revenue is:

= 35 * 200

= #7,000

Percentage profit is:

= (Revenue - Cost) / Revenue * 100%

= (7,000 - 5,700) / 7,000 * 100%

= 18.6%

8 0
3 years ago
Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. Th
Lelechka [254]

Answer:

1.  3 years and 9 months

2. $16,439,325

3. 20.33 %

Explanation:

The Summary of the Cash Flows for this project will be as follows :

Year 0      - $7,125,000

Year 1         $1,875,000

Year 2         $1,875,000

Year 3         $1,875,000

Year 4         $1,875,000

Year 5         $1,875,000

Year 6         $1,875,000

Year 7         $1,875,000

Year 8         $1,875,000

Payback Period

$7,125,000 = Year 1 ($1,875,000) + Year 1 ($1,875,000) + Year 1 ($1,875,000) + $1,500,000 / $1,875,000

                   = 3 years and 9 months

Net Present Value (NPV)

Calculation using a financial calculator :

- $7,125,000 CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

I/YR                12%

Shift NPV      $16,439,325

Internal Rate of Return (IRR)

Calculation using a financial calculator :

- $7,125,000 CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

$1,875,000   CFj

Shift IRR      20.33 %

7 0
4 years ago
The race to the bottom scenario of global environmental degradation is explained roughly like this: a. Companies seek to reduce
irga5000 [103]

Answer:

The answer is "Option c".

Explanation:

When there is racing to a bottom scenario, this should be stated that the multinationals looking for profit are shifting production from such countries with strict environmental regulations to minimize the order, thus generating revenue, that's why the profit-based corporations relocate their manufacturing from strong environmental regulations to low standard countries and thereby lower their costs and increase profits.

7 0
3 years ago
What was one significant difference between the beginning of the great depression and the economic fallout of the covid-19 epide
katrin2010 [14]

One significant difference between the beginning of the great depression and the economic fallout of the covid-19 epidemic in 2020 is great depression is caused by the collapse of the stock market whereas the economic fallout during the pandemic is caused by the shutdown of industries due to lockdown.

<h3>What was the Great depression?</h3>

The Great depression referred to the economic downfall that caused to collapse of the stock market in 1929 due to which the economic stability of the United States become poor and a huge crisis was faced.

The production was halted and a lockdown was established as a result of the widespread diseases, which made the economy worse because there was still consumption but no longer have any economic stability.

Learn more about the great depression, here:

brainly.com/question/7998129

#SPJ1

8 0
2 years ago
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dolphi86 [110]
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