Calculate ownership percentages and entrepreneur values

Assignment Help Operation Management
Reference no: EM132820131

Complete the following table based on these events. Calculate the ownership percentages and entrepreneur values during various funding stages. What were the payout values?

a. Three entrepreneurs, E1 (30%), E2 (20%), E3 (50%) invest $100,000 (100%) in a new venture. They agree to maintain the 30/20/50 percentage breakdown. That is among the three the relative percentage breakdown will remain the same.

b. When the firm's product sales increase faster than expected family and friends

invest another $300,000 based on the firm's revised $800,000 valuation.

c. Success continues and the partners decide that they need to invest in a new warehouse in the United States which represents a new opportunity for the firm. The partners agree to provide an Angel investor with 20% of the firm based on a $2 million valuation.

d. The next day the Angel investor convinces some VCs with deeper pockets to also participate in the venture for another 30% at the same $2 million valuation.

e. With the firm doing so well the VCs realize that the firm should enter overseas markets before a competitor makes its move and invest another $2 million the following year when the firm's valuation has reached $5 million.

Reference no: EM132820131

Questions Cloud

What amount is planned for total capital expenditures : If the company uses a residual dividend policy and plans to borrow $200,000 in new debt, what amount is planned for total capital expenditures?
Evaluate the options for solving the problem : Evaluate the options for solving the problem. Explain how you will implement the chosen solution and reflect on whether this option was the most effective.
Top financial goal for northern trust in 2019 : 1. What was the top financial goal for Northern Trust in 2019?
What is accounts receivable turnover : If a company with cost of goods sold of $1,000,000 and credit sales of $2,400,000 began the year with accounts receivable of $225,000 and ended
Calculate ownership percentages and entrepreneur values : Calculate the ownership percentages and entrepreneur values during various funding stages. What were the payout values?
Conduct research pertaining to the organization : Select one of the criminal gangs listed below and conduct research pertaining to the organization. Outline the history of the gang, their geographical location.
What is the price per share for stock expected : What is the price per share for this stock expected to be 2 years from now?
How would you implement the justice : These are exactly some of the issues the nation is experiencing right now. In your humble opinion, how can restorative justice be effective with the different.
What is the dividend amount expected to be paid : What is the dividend amount expected to be paid by this stock 3 years from now? Round the final answer to 2 decimal places

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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