1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga2289 [7]
3 years ago
8

Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. Th

ey are asking for $10 million, the amount they think they will need over the next three years to reach cash flow positive. They have a pitch deck that includes a proposed deal. They are offering you 25% of the company. The founders own the remaining 75%. You will buy common stock, and are entitled to one of four seats on the board of directors; they hold the other three seats. One slide in the deck contains a detailed prediction of the value of the company. If you invest $10 million, you will own shares that are worth at least $50 million at the end of the third year.
Required:
a. What do you think of this proposed deal?
b. What counteroffer would you make?
Business
1 answer:
Vitek1552 [10]3 years ago
8 0

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

You might be interested in
Harry has a new sports car that is insured with an Insurance Services Office, Inc. (ISO) Personal Auto Policy sold through his n
labwork [276]

Answer:

An insurance contract, like the ISO policy Harry purchased, has certain additional characteristics other than those of typical valid contracts.

Explanation:

Which one of the following is true for Harry?

Select one

A. An insurance contract, like the ISO policy Harry purchased, has certain additional characteristics other than those of typical valid contracts.

B. Harry understands his policy is modular one, combining various coverage forms and other documents especially tailored to his needs.

C. Harry can rest assured that if his new car is a total loss, he can expect to make a profit while being restored to his pre-loss financial position

D. As the policy is a contract of utmost good faith, both his insurer and his agent are the parties expected to be ethical in their dealings with one another.

7 0
3 years ago
Pls help me answer these 2 questions for my Econ Test on Tuesday plzzzz!!!!
Ainat [17]

Answer:

1: A fixed resource is any resource that will always be available with a room arrangement where as Variable resources are electricity producers whose output amount and availability can vary due to the nature of fuel being used - for example, wind, solar, or run-of-river hydro. .

2: The short run is a period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied where as the long run is a period of time in which the quantities of all inputs can be varied.

Explanation:

hope it helps!

6 0
3 years ago
The interest rate for a $1,000 bond is 18 percent. If comparable bonds are paying 17 percent, what is the approximate market val
siniylev [52]

Answer:

Hi how are they .how Many children do you have

8 0
3 years ago
Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amo
Rudik [331]

Answer:

Total Deposits  = $4937.5 billion  

Explanation:

given data

currently in reserves = $400 billion

reserve requirement = 8 percent

reserves amount = $5 billion

solution

first we get  here Minimum Required Reserves that is express as

Minimum Required Reserves = Current Reserves - Excess Reserves    .........................1

put here value we get

Minimum Required Reserves = $400 billion - $5 billion

Minimum Required Reserves = $395 billion

and

Total Deposits is express as

Total Deposits  = \frac{minimum\ required\ reserve}{reserve\ required}      ......................2

Total Deposits  = \frac{395}{0.08}

Total Deposits  = $4937.5 billion  

8 0
4 years ago
When compared with the purely competitive industry with identical costs of production, a monopolist will charge: higher price an
IRISSAK [1]

Answer: Higher price and produce less output.

Explanation:

A monopolist is the only producer of a good in the market or at least wields significant market power. As a result, they can set their own prices without regard for how competitors would react.

This would lead to a situation where the monopoly does not have to be efficient and so will produce less goods than a perfect competition would and in order to make more profit - and because of less efficiency meaning higher costs - they will charge a higher price for output.

7 0
3 years ago
Other questions:
  • What is the best way to describe the purpose of an assembly line in manufacturing?
    11·1 answer
  • Buster industries pays weekly salaries of $17,800 on friday for a five-day week ending on that day. the adjusting entry necessar
    6·1 answer
  • Kelly works at an ice cream shop and observes that the number of people buying ice cream varies greatly from day to day.For a co
    15·1 answer
  • What is a disadvantage of a free market economy?
    5·2 answers
  • A sale of securities by the Fed causes
    8·1 answer
  • Free enterprise and laissez-faire economies gave the most benefits to
    11·1 answer
  • Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some
    10·1 answer
  • Which of the following would be considered the highest risk portfolio
    15·2 answers
  • Instructions 1. Journalize the six adjusting entries required at November 30, based on the data presented. What would be the eff
    14·1 answer
  • What was the impact of the entry of the united states into world war one Germany faced a greater number of allied troops as more
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!