Stacy’s Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy’s Coffee estimates the terminal value of the company four years from now to be $6,579,000. Because this investment is very risky, you want to earn a return of at least 40% per year on your investment. What is the Post-Money Valuation?
Group of answer choices
$1,200,000
$6,579,000
$3,356,632.65
$1,712,567.68
What is the pre-money valuation?
Group of answer choices
$1,112,568
$600,000
$2,756,632.65
$1,200,000
What is your venture capital firm’s desired fraction of ownership in the firm?
Group of answer choices
25.09%
10.59%
35.04%
40%
Suppose that the founders want 150,000 shares. How many shares would your venture capital want?
Group of answer choices
50,240
100,000
80,894
50,000
What is the value per share?
Group of answer choices
$7.42
$12
$6
$35.02
Suppose that the founders of Stacy’s Coffee decide that they need $2,000,000 and they want to raise this capital in two rounds. At t=0, your venture capital firm invests $1,000,000, and at t=2, Vulture Ventures invest $1,000,000. Both investors want to earn a return of 40% per year on investment. What is Vulture Venture’s desired ownership fraction at t=2?
Group of answer choices
41.71%
21.28%
58.39%
29.79%
What is investor 1’s desired ownership fraction at t=0?
Group of answer choices
40%
25%
59.41%
83.17%
What is the price per share at t=0? Assume that the founders still want 150,000 shares.
Group of answer choices
$32.55
$1.35
$10
$4.56
What is the price per share at t=2?
Group of answer choices
$1.68
$2.64
$8.31

Answers

Answer 1

Pre-money valuation can be calculated using the formula: Post-money valuation - Investment. The post-money valuation of the firm is given as $6,579,000. We also know that the venture capitalist firm wants a return of 40% on their investment, which means that their desired fraction of ownership is 40%. Using the formula of post-money valuation, the investment can be calculated.

The investment required is $600,000. Therefore, the pre-money valuation of the firm is $6,579,000 - $600,000 = $5,979,000.What is the value per share?The venture capitalist firm will invest $600,000 for the 40% ownership of the firm. Therefore, the value of the firm is 100%/40% = 2.5 times the investment. This is equal to $2,500,000 ($600,000 × 2.5). The founders want 150,000 shares. Therefore, the value per share can be calculated as $2,500,000 ÷ 150,000 = $16.67 per share.

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Related Questions

Is competition good for business?
Is it good for consumers?

Answers

It helps promote better safety, innovation and technology—and lower prices. it benefits consumers by keeping prices low and the quality and choice of goods and services high.

Answer:

yes and yes

Explanation:

As any newspaper will confirm, incidents of privacy breaches continue to rise. However, what's unclear from privacy breaches is whether this impacts customer, patient or citizen behaviour post breach. Consider your favourite store. If your credit card number was exposed consequent to a privacy breach exposing thousands of records, do you think you would stop shopping at the store? Explain why.

Considering your response, do you think breach notification should be required by law?

Answers

Privacy breaches impact customer behavior; individual responses vary; the decision depends on trust, convenience, and loyalty.

The response to a privacy breach and its impact on customer behavior is subjective and can vary among individuals. Some customers may lose trust in a store and choose to stop shopping there if their credit card information is exposed.

They may be concerned about the security of their personal information and prioritize their privacy. On the other hand, other customers may continue shopping at the store despite the breach.

Factors such as the store's response to the breach, its reputation for security measures, convenience, or loyalty to the brand may influence their decision.

Regarding breach notification requirements, it can be argued that they are necessary to ensure transparency and accountability.

Requiring organizations to notify individuals about breaches allows them to take necessary precautions and protect themselves from potential harm. It also holds organizations accountable for their data security practices.

However, the specifics of breach notification requirements may vary by jurisdiction and industry. Balancing the need for consumer protection with the practicality and effectiveness of such requirements is crucial to strike a reasonable and fair approach to breach notifications.

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Businesses use firewalls to protect their networks from internal threats.
O True
False

Answers

True!
Correct on ED2022

a 20-year bond with 10% yearly coupons has a 9.25% current yield. it can be called in three years at a call price of $1050. find the yield to call.

Answers

The yield to call of a 20-year bond with 10% yearly coupons and a 9.25% current yield, which can be called in three years at a call price of $1050, is 10.73%.

To calculate the yield to call, we need to first calculate the call price. The call price is the present value of all the cash flows from the bond up until the call date, discounted at the yield to call.

This can be done using the formula:
Call Price = CF1 / (1 + YTM) + CF2 / (1+YTM)^2 + ... + CFn / (1+YTM)^n
Where CFn is the cash flow at period n and YTM is the yield to call.

Once we have calculated the call price, we can use the call price to calculate the yield to call. This can be done by solving for YTM in the equation given above. After rearranging the equation, we can calculate the yield to call by using the formula:
YTM = (CF1 / Call Price - 1)^(1/n) - 1
Where n is the number of periods until the call date.

In the given example, the yield to call is 10.73%.

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What was the first american industry to raise capital by selling shares of stock to investors?

Answers

The first American industry to raise capital by selling shares of stock to investors was the railroad industry. In the early 19th century, railroads played a crucial role in the economic development of the United States.

To finance the construction and expansion of railroads, companies began selling shares of stock to investors. This allowed individuals to become partial owners of the company and share in its profits. The sale of stocks provided a means for the railroad companies to raise significant amounts of capital, enabling them to build tracks, purchase locomotives, and expand their networks.

The success of the railroad industry in raising capital through stocks paved the way for future industries to follow suit.


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which of the following is not a type of factor that drives stock prices, according to your text? a. firm-specific factors b. market-related factors c. economic factors d. all of these choices are factors that affect stock prices.

Answers

According to the text, (D) all of the choices given - firm-specific factors, market-related factors, and economic factors - are types of factors that can drive stock prices.

Therefore, the correct answer to the question "Which of the following is not a type of factor that drives stock prices, according to your text?" would be d. "all of these choices are factors that affect stock prices."

It is important for investors and traders to consider all of these factors when analyzing stock prices and making investment decisions.

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In 2022, nina contributes 10 percent of her $100,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is nina's after-tax accumulation from her 2022 contributions to her 401(k) account?

Answers

The after-tax accumulation from Nina's 2022 401(k) contributions is roughly $34,314.59.

The actions below must be taken in order to determine Nina's after-tax accumulation from her 401(k) account contributions in 2022:

Determine Nina's before-tax contribution in step one:

Assuming Nina contributes 10% of her $100,000 yearly earnings, her pre-tax contribution would be $10,000.

Determine Nina's accumulation before to taxes step two:

When Nina makes 401(k) contributions, she anticipates earning a 7% before-tax rate of return, thus her before-tax accumulation after 25 years is: $10,000 x (1 + 0.07)25 = $45,752.79

Determine Nina's after-tax growth in step Three:

We must take into account the tax ramifications of Nina's contributions and profits in order to determine her after-tax accumulation. The way Nina's 401(k) contributions and earnings are taxed will vary depending on her tax rate, when she retires, and the current tax legislation.

Nina's after-tax accumulation is $45,752.79 x (1 - 0.25) = $34,314.59 assuming a 25% tax rate.

Consequently, Nina's 401(k) account's after-tax accumulation from her 2022 contributions is roughly $34,314.59.

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United States Geological Survey stream-gauging stations measure all but which of the following?
A. water depths
B. channel width
C. water velocity
D. amount of sediment being carried by the stream
E. All of these are correct.

Answers

United States Geological Survey (USGS) stream-gauging stations measure water depths, channel width, and water velocity, but they do not measure the amount of sediment being carried by the stream.

USGS stream-gauging stations are designed to collect a wide range of data on the characteristics and behavior of streams and rivers. This data is used to monitor water levels and flow rates, predict floods and droughts, and assess the health of aquatic ecosystems. To collect this data, stream-gauging stations typically use a combination of electronic sensors, physical measurements, and visual observations.

The three primary types of data collected by stream-gauging stations are water depth, channel width, and water velocity. Water depth is measured using pressure sensors or float devices that detect changes in water pressure or elevation. Channel width is typically measured using visual observations or with electronic distance-measuring devices. Water velocity is measured using either mechanical current meters or acoustic Doppler instruments.

While USGS stream-gauging stations collect a wide range of data on stream and river conditions, they do not typically measure the amount of sediment being carried by the stream. Sediment transport can be a key indicator of stream health and can also affect water quality, but measuring sediment transport can be difficult and costly, and requires specialized equipment and techniques.

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answers.
1. Becky and Tom are engaged and have set a date for the ceremony. Becky has, at her own expense
and with Tom's knowledge, rented a chapel for the wedding and a reception hall, bought a dress
and invitations, contracted for flowers, a photographer, and a caterer. Now Tom has told her that
he is breaking off the engagement. Does Becky have a legal recourse to recover her expenditures?

Answers

Yes, Becky has a legal recourse to recover her expenditures.

What is Expenditure?

This is defined as a payment with either cash or credit to purchase goods or services.

Since the service wasn't rendered , Becky can recover her expenses legally although she may not recover all as an agreement between her and the business owners will be reached.

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9. If you found that you were in financial trouble because of credit and had great difficulty paying your monthly bills, what would you do?

Answers

Answer:

You would have to cut down on some luxuries, like lots of foods, amusement parks, shopping trips, etc. If you have have extra hours, work more hours, quite possibly take another job.

Explanation:

Relationship between public and private sector in mixed economy?​

Answers

Answer:

Mixed economy is referred to the economic system in which both public sector and private sector coexist. In this type of economic system, private sector as well as the state direct the economy and the means of production is shared between them.

hope it helps♥️✌️

The Classical view of the economy is characterized by: a. A laissez-faire approach b. The inherent instability of the economy. c. The belief that demand creates its own supply. d. Overt fiscal policy.

Answers

The Classical view of the economy is characterized by A laissez-faire approach. So, the correct option is (a).

The Classical view of the economy is associated with classical economists such as Adam Smith and David Ricardo. It is characterized by a laissez-faire approach, which emphasizes limited government intervention in the economy. According to this view, the economy is self-regulating and operates efficiently without significant government interference.

The classical economists believed in the principles of free markets, individual economic freedom, and the invisible hand mechanism, which suggests that self-interested actions in a competitive market lead to the best allocation of resources and overall economic well-being.

Option b, the inherent instability of the economy, is not a characteristic of the Classical view. In fact, classical economists generally held the belief in the stability and self-regulating nature of the economy over the long run.

Option c, the belief that demand creates its own supply, is more closely associated with the Keynesian view of the economy, which emerged later as a response to the Great Depression. The Classical view, in contrast, focused on the role of supply and production as the drivers of economic growth.

Option d, overt fiscal policy, is not a characteristic of the Classical view. Classical economists generally advocated for limited government involvement, including minimal use of fiscal policy to influence the economy. They favored a hands-off approach to economic management, allowing market forces to determine outcomes.

Therefore a. A laissez-faire approach - is the correct answer.

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small business firms create many -blank- opportunities that help develop communities as well as the counties economy

it's a type your own answer thing ​

Answers

Answer: Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.

Find the present value of an ordinary annuity with deposits of \( \$ 24,689 \) each year for 4 years at \( 9.6 \% \) compounded annually. What is the present value? \( \$ \) (Round to the nearest cent

Answers

The present value of an ordinary annuity with deposits of $24,689 each year for 4 years at 9.6% compounded annually is approximately $83,644.53.

To find the present value of an ordinary annuity, we can use the formula:

PV = P * ((1 - (1 + r)^(-n)) / r)

Where:

PV is the present value

P is the payment size

r is the interest rate per period

n is the number of periods

In this case, the payment size is $24,689, the interest rate per period is 9.6%, and the number of periods is 4 (4 years).

We need to solve for PV, the present value. Plugging in the values, we have:

PV = 24,689 * ((1 - (1 + 0.096)^(-4)) / 0.096)

Calculating this expression, we find that the present value is approximately $83,644.53.

Therefore, the present value of an ordinary annuity with deposits of $24,689 each year for 4 years at 9.6% compounded annually is approximately $83,644.53.

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Why do you think Zappos offers a $2,000 incentive to quit?

Answers

Answer:

Explanation:

Is there more to the question?

what are the three most important value drivers that managers can use to create a competitive advantage?

Answers

The correct answer is that The most important value drivers that managers can use to create a competitive advantage are. -complements -product features -customer service.

What is competitive advantage?

Competitive advantage is central to an organization's performance in a competitive marketplace.

Differentiate your company from its competitors and pave the way for higher profit margins, greater return on investment and accumulation of valuable resources.

Competitive advantage comes from the value a company can create for its customers. Sometimes this comes in the form of lower prices than competitors for the same benefits, and sometimes in the form of unique benefits that offset the higher prices.

Ultimately, the value created for the customer must outweigh the initial cost of creating that value for the organization.

There are two types of competitive advantage-> Low cost - when a company can manufacture a product at a lower cost than its competitors.

Differentiation – When an organization can differentiate its products and services in terms of quality, style, customer service, etc. to provide customers with better value than their competitors.

Cost advantage and differentiation is the ability to better manage industry structure, or industry forces (as introduced in Michael Porter's model of five forces) that influence profitability, than competitors.

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What is the name for the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences?

Answers

Answer:

Integrated Marketing Communication

Explanation:

As the name implies, the concept of integrated marketing communication is aimed at leveraging the power that comes with the synergy between different marketing and communication tools and services such as consistent and repetitive advert placement, sales and promotional offers, coordinated and friendly marketing campaigns, and son on, all these carefully and strategically tailored towards the gradual and steady capture of a specific target audience over a certain period of time. These integrated marketing strategy or procedure is aimed towards such audience so that it would cover all aspects of the consumers wants in other to ultimately impact their deciak making and adoption of the product or services.

4/ "People 3. How can you are attracted to the poultry farming these days" Explain with practical examples.people are attracted to the poultry farming these days explain with particle example ​

Answers

we can attracted to the poultry farming these days by saying eveyone to involve in this work and be excited

What does a computer forensic specialist do?

Design home security systems
Design large security systems for businesses
Work in network and computer security
Hack into computer systems

Answers

Answer:

a computer forensics specialist is an information technology professional who collects and analyzes data from computers and electronic media to be used as legal evidence in criminal investigations.

Explanation:

3rd sentence

Next O Cover Letters and Résumés: Mastery Test
1
Select the correct answer.
Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. In what
section of her résumé should Josita include these programs?
OA honors
OB. activities
OC. skills
OD. experience
Reset
Submit Test
Next

Answers

If Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. The section of her résumé that  Josita should include these programs is: C. skills.

What is skills?

Skills can be defined as the  ability a person or an individual possess when it comes to performing or carrying out tasks. A person can tend to possess inbuilt Skills  or acquired skills they known will be of important to them.

Based on the scenario the software programs was the skills that Josita acquired because she learned it, the software program should be included as part of the skills she possess in her resume as this will enables are employer to know the skills she possess.

Therefore If Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. The section of her résumé that  Josita should include these programs is: C. skills.

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What encourages
people to buy
shares in the
ownership of a
private limited
company?

Answers

Profit is the reward for risk taking in business so
The dividends encourage the people to buy shares in the company as they would receive a share of the profits made by business they invested in.
How much profit they'll make.
And if the company has a good potential and reputation.
I think answer should be company please give me brainlest I hope this helps let me know if it’s correct or not okay thanks

he financial sector channels savings back into the spending stream. group startstrue or falsetrue, unselectedfalse, unselected

Answers

Based on the macroeconomic concept, it is True that the financial sector channels savings back into the spending stream.

What is the Financial Service Sector?

Financial Sector is a term that is used to describe the economic sector that provides financial services to people and corporations.

Generally, the financial service sector comprises a variety of financial firms such as banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies.

In the scheme of things, financial sectors like banks channel savings into the spending side through loans for business or stock trading.

Also, real estate brokers and insurance companies channel the savings to the spending stream through real estate investments, stock trading, and insurance payments accordingly.

Hence, in this case, it is concluded that the correct answer is True.

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Question 3
Which of the following is NOT a way the first paragraph should use to draw the employer's interest?
A-Listing applicant's qualifications
B-Praising the company
C-Mentioning a mutual contact if there is one
D-Referencing the placement of the job posting

Answers

A. Listing applicant’s qualifications

Explanation:
That should be saved for the body of your paper. The first paragraph is your ‘hook’ for the employer. The employer would be more interested and then read your credentials after B, C, and D.


Complete the following sentence.
A traditional cover letter's format includes an introduction, a ______ and a ______ paragraph.

Answers

Answer:

body, closing

That was easy

Explanation:

if personal income taxes and business taxes increase, then this will
a. decrease aggregate demand and increase aggregate supply. b. increase aggregate demand and decrease aggregate supply. c. increase aggregate demand and aggregate supply. d. decrease aggregate demand and aggregate supply.

Answers

the multiplier impact the aggregate supply and demand will decline if personal income taxes and company taxes rise.

How does income tax work?

Governments levy income tax, a specific kind of tax, on money made by people and businesses under their control. Public services, debt service, and the provision of products for citizens are all paid for via income tax. . Tax rates and taxable income are often multiplied to calculate income tax. Depending on the taxpayer's qualities and the type of income, different tax rates may apply.

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people needing to have their cars repaired can go to a muffler store, a transmission shop, a tire retailer, or a gas station for a tune-up. talcott parsons refers to this type of specialization as

Answers

Talcott Parsons refers to the type of specialization described in the scenario as "structural differentiation."

Structural differentiation refers to the division of labor and specialization within a society or organization. In this context, different businesses or establishments focus on specific areas of expertise related to car repair. Each entity specializes in a particular aspect of car maintenance, such as mufflers, transmissions, tires, or tune-ups. This division of labor allows for greater efficiency and effectiveness in delivering specialized services to customers.

According to Talcott Parsons, structural differentiation is a key characteristic of modern societies. It enables individuals and organizations to specialize in specific tasks or functions, enhancing productivity and facilitating coordination within complex systems. In the case of car repair, structural differentiation allows customers to choose the service provider that best aligns with their specific needs, leading to more efficient and tailored solutions for car maintenance and repair.

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Why are ethics important in the workplace?

Answers

Answer:

Ethics is important in a workplace because :

a) It creates a positive and safe work environment.

b) It helps to instill professional behavior in employees

c) It helps to maintain orderliness in an organization and prevents chaos from happening.

d) It prevents discrimination or favouritism in organizations.

e) Workplace Ethics ensures that all employees are treated fairly.

f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.

Explanation:

Ethics at a workplace or Workplace Ethics can be defined as the standards or regulations that are put in place by a firm or organisation that helps to guide the behavior or attitude of employees at work such that safe work ambience is created and employees relate in a professional manner to one another.

Examples of Workplace Ethics are:

a) Punctuality

b) Honesty

c) Loyalty

d) Productivity

e) Dependability

Ethics at the workplace in important because:

a) It creates a positive and safe work environment.

b) It helps to instill professional behavior in employees

c) It helps to maintain orderliness in an organization and prevents chaos from happening.

d) It prevents discrimination or favouritism in organizations.

e) Workplace Ethics ensures that all employees are treated fairly.

f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.

Answer: professional organizations

Explanation: took the test (:

Question 2 of 5
The amount of money a person has to pay regularly to avoid late fees is the
A. minimum monthly payment
B. credit limit
C. interest rate
D. credit score

Answers

Answer:

A

Explanation:

to ensure that you pay at least the minimum amount by the due date.

A. Because it’s the only one that makes sense

A contract between Lee and Mary may not be assigned if it
a. does not expressly permit assignment.
b. involves a sale of goods.
c. involves personal services.
d. is oral.

Answers

In contract law, the general rule is that a contract can be assigned unless there is a specific provision or circumstance that prohibits or restricts assignment.

While there are exceptions and specific rules depending on the jurisdiction and type of contract, the absence of an express provision allowing assignment typically means that the contract cannot be assigned.

b. Involves a sale of goods: Contracts involving the sale of goods can generally be assigned unless there is a specific provision prohibiting assignment. The Uniform Commercial Code (UCC), which governs the sale of goods in the United States, allows for assignment of contract rights in such cases.

c. Involves personal services: Contracts for personal services can be assigned unless the contract specifically prohibits assignment or if the assignment would significantly change the duties or obligations of the contracting parties. However, personal service contracts often contain provisions addressing the assignment or delegation of duties.

d. Is oral: While written contracts are generally preferred for clarity and enforceability, oral contracts can still be valid and enforceable in many situations. The enforceability of an oral contract is generally not dependent on its assignability. Whether an oral contract can be assigned or not would depend on the applicable contract law principles and any specific provisions or circumstances involved.

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why all choices are economic choices?

Answers

Answer:

All choices are economic choices because with every choice we make, we are (sometimes subconsciously) analyzing the costs and benefits of our options. Our choices are guided by self-interest and every choice we make involves some kind of cost, whether it be time or money or something else.

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