FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GS is a private firm that was started by PK for developing specialized software for greeting card companies. PK had invested $100,000 in the company.

GS is a private firm that was started by PK for developing specialized software for greeting card companies. PK had invested $100,000 in the company. One year later, a venture firm Big Bucks offers PK $1 million for a twenty percent stake in the company. What is the pre-money value of GS?

A. $0.9M

B. $3.0M

C. $4.0M

D. $5.0M

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance

Principles Of Managerial Finance

Authors: Lawrence J Gitman, Chad J Zutter

7th Edition

0133546403, 9780133546408

More Books

Students also viewed these Finance questions

Question

★★★★★
Not-for-Profit Hospital Financial Statement Analysis. Examine the financial statements for Oak Valley Hospital for the years ended December 31, 2010, and 2011. Required Prepare a short answer to...

Answered: 1 week ago

Question

★★★★★
Environmental: Land Formations Arches National Park is located in southern Utah. The park is famous for its beautiful desert landscape and its many natural sandstone arches. Park Ranger Edward...

Answered: 1 week ago

Question

★★★★★
Identify the similarities and differences of the effects of inflation and unemployment on happiness.

Answered: 1 week ago

Question

★★★★★
Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The...

Answered: 1 week ago

Question

★★★★★
Problem 7.13 Kintel, Inc., management wants to raise $1 million by issuing she-year coupon bonds with a face value of $1,000. The company's investment banker states that investors would use as 10.32...

Answered: 1 week ago

Question

★★★★★
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $37,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years...

Answered: 1 week ago

Question

★★★★★
A hiring team is considering a candidate for a cloud security analyst position. Which part of the interview process assesses how well the candidate will fit in with the team's culture? One-on-one...

Answered: 1 week ago

Question

★★★★★
4. Consider a system composed of a manufacturing factory and a waste treatment plant owned by the manufacturer. The manufacturing plant produces finished goods that sell for a unit price of 10. Howeve

Answered: 1 week ago

Question

★★★★★
How to craft high impact digital advertising campaigns using semrush exam?

Answered: 1 week ago

Question

★★★★★
Loans to non-profit organizations represent a major category of the loans banks originate. Question 1 options: True False

Answered: 1 week ago

Question

★★★★★
Pharoah Company obtains $44,800 in cash by signing a 7%, 6-month, $44,800 note payable to First Bank on July 1. Pharoahs fiscal year ends on September 30. What information should be reported for the...

Answered: 1 week ago

Question

★★★★★
What is the content-level meaning?

Answered: 1 week ago

Question

★★★★★
2. Interview a professional in your fi eld of choice. Identify the communication skills that he or she thinks are most important for success. Which of those skills do you already have? Which skills...

Answered: 1 week ago

Question

★★★★★
To what extent are liking, responsiveness, and power expressed on the relationship level of meaning?

Answered: 1 week ago

Previous Question Next Question