BUSINESS COLLEGE

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.)

Answers

Answer 1
Answer:

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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The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

Answers

Answer:

The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.

Explanation:

Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.

Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $25.50 per share; its last dividend was $2.20; and it will pay a $2.31 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity

Answers

Answer:

14.06%

Explanation:

The computation of the cost of common equity using the DCF method is shown below:

Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate  

= [$2.31 ÷ $25.50] + 0.05

= 14.06%

We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come

Which of these is NOT one of the documents that a project manager can refer back to in order to make sure that all planned work has, in fact, been completed

Answers

Answer: d. Resource Breakdown Structure (RBS)

Explanation:

The options are:

a. Work Breakdown Structure (WBS)

b. Project Charter

c. Project Scope Statement

d. Resource Breakdown Structure (RBS)

The documents that a project manager can refer back to in order to make sure that all planned work has, in fact, been completed are the project charter, project scope statement, work breakdown structure. They can all be used to ensure that whatever was meant to be done have all been completed and that nothing is left out.

The project charter simply contains the objectives of the projects and how the project will be done. The project scope statement contains the deliverable of the project,and everyone that the project will impact upon.

The work breakdown structure is used to divide the work into smaller parts for efficiency and effectiveness sake.

It should be noted that the resource Breakdown Structure (RBS) is not part of the documents that the project manager should refer back on.

Final answer:

In project management, there are several documents used to check if all planned tasks have been performed such as the Project Charter, Project Plan, and Work Breakdown Structure (WBS). However, the Employee Handbook is not typically one of these, as it is more associated with HR policies.

Explanation:

In the framework of project management, a number of documents are available for a project manager to reflect on and validate that all anticipated tasks have indeed been carried out. These documents comprise of theProject Charter, Project Plan, and the Work Breakdown Structure (WBS). However, the Employee Handbook is not typically considered one of these documents. This handbook is more associated with HR procedures and policies, unlike the others which are tailored explicitly to project management and ensure that all planned tasks have been implemented as required.

Learn more about project management here:

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You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.6 percent indefinitely. The company just paid a dividend of $3.41 and you feel that the required return on the stock is 11 percent. What is the price per share of the company's stock?

Answers

price per share of the company's stock is $53.28

Explanation:

Under dividend growth model a stock is overvalued or undervalued assuming that the firm’s expected dividends grow at a value g forever, which is subtracted from the required rate of return or k.

Therefore, the stable dividend growth model formula calculates the fair value of the stock as P =D1 / ( k – g ).

P= price per share

D1 = current dividend

k = required return

g = growth rate

P= $3.41 ÷ (11 %  - 4.6% ) =( 3.41 ÷ 0.064 )=  $53.28

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Producers believe the economy is headed for a recession, so they reduce their purchases of machinery and equipment. A. The Short Run Aggregate Supply curve shifts to the right.
B. The Aggregate Demand curve shifts to the left.
C. The Aggregate Demand curve shifts to the right.
D. The Short Run Aggregate Supply curve shifts to the left.

Answers

Answer:

A - The Short Run Aggregate Supply curve shifts to the right. 

Explanation:

The Short Run Aggregate Supply curve plots aggreagrate price against aggreagrate quantity.

If producers believe a recession is imminent and they reduce the amount of machinery purchased, the quantity supplied would reduce shifting the Short Run Aggregate Supply curve to the left.

I hope I was able to help you.

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Answers

Answer:

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Explanation:
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