Explain why is monetary amount of each fair share different

Assignment Help Finance Basics
Reference no: EM131196702

Fair Shares

The Center City Anuraphilic (frog lovers) society has fallen on hard times. Abraham, Bobbyand Charlene are the only remaining members and each feels equally entitled to takepossession of the society's collection of live rare tropical frogs. The decision is made to use the method of sealed bids and fair shares to decide who will take possession of the entirecollection and how much will be paid in compensation to the other members.

Abraham unseals his estimate of the value of the collection at $12,000.00. Bobby's estimate of the value of the collection is $6,000.00. Charlene values the collection at $9,000.00.

• Who receives the collection of frogs?
• What is each person's fair share of the monetary value of the collection?
• Why is the monetary amount of each fair share different?
• How much money is owed to each of the two people who do not "win" the collection offrogs?
• In your opinion how "Fair" is the process described above?

Now pretending for a moment that you like frogs, we will insert you into the situation under special circumstances. Despite (or perhaps because of) your love of all things amphibious, you currently lack the funds to pay each of the others their probable fair share. You will not receive the collection, but wish to receive as much money as possible. You have no knowledge of the amounts in each of the sealed bids, but strongly suspect that Abraham will bid between $10,000.00 and $12,000.00.

Given that you cannot afford to "win" the process, describe how you will go about deciding what to put down for your own estimate of the value of the collection.

Reference no: EM131196702

What is next year dividend

The last reported earnings for White Corp. were $1.50 last year and earnings are expected to grow at 5% indefinitely. If their dividend policy is to pay out 50% of earnings

Ethical ramifications of re-classifying investments

What are the ethical ramifications of re-classifying investments? Give an example of when reclassifying a long term investment as a short term investment makes financial sen

What is the effective annual rate

Cull Incorporated recently borrowed $250,000 from Century Bank when the prime rate was 4%. The loan was for 90 days with interest to be paid at the end of the period with a

Use of derivative financial instruments

The company employs a number of strategies to manage these risks, including the use of derivative financial instruments. Derivatives involve the risk of non-performance by t

Develop an estimate of fixed electricity costs per month

Using the high-low method based on machine hours, develop an estimate of variable electricity costs per machine hour. Using the high-low method based on machine hours, develop

What considerations might be important in the selection

Three years later, as an individual investor, you decide to add your own holding of the security but only at a price that you consider appropriate. What form of order might

Identify poor team behavior

For example, what incidents of disruptive, interpersonal conflict do you observe? How do individuals demonstrate a lack of respect for each other? How do they provide feedba

Jossiah and jemima

Jossiah and Jemima Benson have recently married and in planning their future have decided to solicit the services of a financial advisor with the aim of implementing their sho


Write a Review

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