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Geological Consultants Ltd. is a private company with four shareholders: W, X, Y, and Z. The following table shows their respective shareholdings. X is retiring
Geological Consultants Ltd. is a private company with four shareholders: W, X, Y, and Z. The following table shows their respective shareholdings. X is retiring and has agreed to sell his shares to the other three shareholders for $175,000. The agreement calls for the 500 shares to be purchased and allocated among W, Y, and Z in the same ratio as their present shareholdings. The shares are indivisible, and consequently the share allocation must be rounded to integer values. Partner Number of shares owned 300 w 500 350 400 N a. What implied value does the transaction place on the entire company? Value of company $ b. How many shares will W, Y, and Z each own after the buyout? (Round your intermediate calculations to nearest whole number) W shares shares Z shares c. What amount will W, Y, and Z each contribute toward the $175,000 purchase price? Prorate the $175,000 on the basis of the allocation of X's 500 shares to each of the remaining shareholders. w z
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