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Benjamin Garcia's start-up business is succeeding, but he needs $209,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $836,000 and the angel has agreed to invest the $209,000 that is needed. Benjamin presently owns all 37,000 shares in his business. Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant.
Questions:
1) What is a fair price per share? Round your answer to the nearest cent.
2) How many additional shares must Benjamin sell to the angel? Round your answer to the nearest whole.
Most of us intuitively understand that a dollar required today does not have the same value as a dollar needed (or utilized) in the future. This is due to several factors including interest rates, compounding factors, discounting factors and financia..
Retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. After-tax operating income is calculated as EBI..
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Analyze the balance sheet, income statement and statement of cash flows for the company. Your analysis should be two paragraphs in length
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Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,400,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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