Money valuation in the second stage

Assignment Help Macroeconomics
Reference no: EM131049236

An entrepreneur invested $500,000 of his own money in a "theme" restaurant, The Mad Cow. It becomes wildly successful and he sought out a VC to assist with opening a chain of these restaurants. After the first stage of funding the VC had a 43% ownership stake in The Mad Cow. In the second stage of financing the VC contributed $32 million. The VC's ownership stake after the second stage increased to 62%. What is the after-the-money valuation in the second stage?

Reference no: EM131049236

Questions Cloud

What benefits do businesses gain by offering wireless intern : Then determine what the draw is for the business to provide such a service. 3) What benefits do businesses gain by offering wireless Internet access?
Case problem with sample answer : Case Problem with Sample Answer A West Virginia bank ran its asset value from $100 million to $1 billion over seven years by aggressively marketing subprime loans. The Office of the Comptroller of the Currency, a federal regulator, audited the ban..
Managerial economics-a problem solving approach : Spend 2 or 3 hours observing the organization in which you are employed. During the observation, identify internal and external interactions of the organization. You can talk to stakeholders who might have information relating to external interact..
Compute present value of net non-recurring investment : Sancore Inc. decided to invest in a project costing $35,000. It is assumed that all of $8,000 working capital will be recovered at the end of the project, which is four years. The opportunity cost of capital is 10%. Compute the present value of net n..
Money valuation in the second stage : It becomes wildly successful and he sought out a VC to assist with opening a chain of these restaurants. After the first stage of funding the VC had a 43% ownership stake in The Mad Cow. In the second stage of financing the VC contributed $32 mill..
What annual rate of return is implied : What annual rate of return is implied on a $2,500 loan taken next year when $5,250 must be repaid in year 6? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Short-term assets and short-term debt-paying ability : Prepare an evaluation that compares the financial performance of two companies of your choice Part 1: Liquidity Ratios Review the ratios related to the liquidity of short-term assets and short-term debt-paying ability. Select which liquidity ratios w..
What is the affective annual rate : A firm sells its $1,110,000 receivables to a factor for $1,076,700. The average collection period is 1 month. What is the effective annual rate on this arrangement? What is the affective annual rate?
Yield to maturity of the bond : A municipal bond with a coupon rate of 5.80 percent sells for $4,900 and has six years until maturity. What is the yield to maturity of the bond?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Detailed explanation of individual behavior

An internal study at Mimeo, revealed that much of its workers assembles 3 copiers per hour and is paid $3 for every assembled.

  Now assume the government increases spending reducing

Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.

  How would this news affect the price level that people would

The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well-known for his view that inflation is not a major problem for an economy.

  Federal open market committee presentation

Learners are to research the current value and the expected future changes in the following economic indicators:

  Explain why they need to hedge foreign exchange

Why they need to hedge foreign exchange, What sort of foreign exchange instruments you would recommend, Whether they have to be aware of any government regulations that would affect earnings and cash flow

  A father goes to the pharmacy late at night for cold

A father goes to the pharmacy late at night for cold medicine for his sick child. all medicine have almost the exact ingredients brand names sell for more. Explain, in economic terms this situation to the father.

  Illustrate what factors have contributed to increased income

Illustrate what factors have contributed to increased income inequality an economy along with an equitable income distribution may be efficient as well.

  When two inputs are variable and the prices of inputs

1. Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) where interviewed regarding the effect on the firm they both work at. Keeping all else constant.

  Graph the demand data by using the midpoint formula

Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.

  When pay the amounts rather than receive them

At an annual compound interest of 10% per year, would you rather receive $10,000 per year for 5 years or receive $5,000 per year for 10 years What is your preference if you must pay these amounts rather than receive them

  A graph the autarky equilibrium for an economy

A graph the autarky equilibrium for an economy

  How many units should each plant produce to maximize profit

A perfectly competitive firm faces a market price of $10 for its output X. It own two plants, A and B whose total costs are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd