Question
A company investor wants to invest $2.5 million in the Company Export Import that you have which has been in operation for the past seven
A company investor wants to invest $2.5 million in the Company Export Import that you have which has been in operation for the past seven months. You do not expect to make a profit until the 5th year, and when your net income is expected to $5,000,000. For Common Stock, Export-Import where comparable companies are currently it is traded on the free market at $50 per share. Net profit exportimport last year was $500,000 and the company has 200,000 shares of common stock circulated.
9% acquired percentage for 2,5 million investment d. Based on the equation , give your analysis whether the company should continue
cooperation with these investors or you will choose another investment source for example by borrowing from the bank. Give youropinion .
I Acquired % Ownership = ExE5)/(1+r) 2,500,000 10,000,000 =x5,000,000)/(1+0,305 500,000 9%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started