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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.

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The number and characteristics of sellers and buyers are known as _____.
loris [4]

Answer:

The number and characteristics of sellers and buyers is called market structure.

Explanation:

hope it help

8 0
3 years ago
The York Company has arranged a line of credit that allows it to borrow up to $64 milion at any time. The interest rate is .640
klio [65]

Answer:

8.46%

Explanation:

Monthly interest rate = 0.640%

Number of month in year = 12

Investment in non-interest bearing = 6%

Effective annual interest = [(1 + Monthly interest rate)^Number of month] - 1 / (1 - Investment in Non-interest)

Effective annual interest = [(1 + 0.640%)^12] - 1 / (1 - 6%)

Effective annual interest = (1.0064)^12 - 1 / 0.94

Effective annual interest = 1.07956187072 - 1 / 0.94

Effective annual interest = 0.07956187072 / 0.94

Effective annual interest = 0.084640288

Effective annual interest = 8.46%

Hence, the Effective annual is 8.46%.

7 0
3 years ago
Hayden Company expects its November sales to be 20% higher than its October sales of $160,000. All sales are on credit and are c
8_murik_8 [283]
The awnser is a choose a
4 0
3 years ago
The 2016 financial statements of CVS Health Corporation reported the following information (in millions): 2016 2015 Net sales $1
Serggg [28]

Answer:

option (D) 10.34

Explanation:

The  inventory turnover ratio for 2016 will be given as:

= [Cost of goods sold ] ÷ Average inventory

also,

Cost of goods sold in 2016 = $148,669

Average inventory = [ 2015 inventory + 2016 inventory ] ÷ 2

= [ 14,001 + 14,760 ] ÷ 2

= 28761 ÷ 2

= 14,380.5

Therefore,

The  inventory turnover ratio for 2016 = $148,669 ÷ 14,380.5

= 10.34

Hence,

The answer is option (D) 10.34

8 0
3 years ago
nobel prize winner milton friedman said that a bad central banker is like a ""fool in the shower."" how does this apply to centr
cluponka [151]

There are monetary policy lags

<h3>What is monetary policy lags ?</h3>

The presence of temporal delays is one of the drawbacks of countercyclical monetary policy. The monetary authority must have time to recognise the need for action, take that action, and observe how that action affects economic activity. The time relationship between the resultant monetary series and the subsequent series of impacts of monetary operations is how Friedman defines "lag." He claims that economic circumstances are only affected by monetary measures after a "long and varied lag." Friedman makes a distinction between three fundamental lags: the administrative lag, the operation lag, and the recognition lag.

To learn more about monetary policy check the given linkhttps://brainly.in/question/6090122

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4 0
1 year ago
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