Ken Montgomery, founder of XL NanoDevices, invested $50,000 as seed money from his personal funds when he started XL in April 2019. His co-founder, Steve Moore, invested $25,000 at the same time. Arbitrarily, they decided to issue 1,000,000 shares of common stock to themselves as founders and sole owners when they filed XL's incorporation papers with the state. Ken, who had the initial idea for XL and who had invested the greatest amount of "sweat equity" to date, received 750,000 shares of XL common stock while Steve received 250,000 shares. No other shares have been issued since.

When the company was launched in April 2019, the founders also secured the backing of Meg Ferris, a local angel investor with substantial experience in their technology. Meg invested $300,000 in XL in the form of a convertible note. Terms of the note included: (i) a compounding interest rate of 6% per annum; (ii) a duration of 24 months; (iii) a conversion discount of 20% tied to the Series A share price; (iv) a $1,000,000 minimum future financing for conversion of the note; (v) a pre-money valuation cap on the note of $6,000,000; and, (vi) if XL is acquired prior to a Series A financing, Meg would receive 150% of the note's principal investment amount.

As of today, April 2021, Ken and Steve have successfully developed a working prototype of their revolutionary new drug delivery nanoparticles and are beginning to attract favorable attention from a number of research laboratories at large pharmaceutical companies.

Timberlake Associates, a regional venture capital firm with considerable experience in nanotechnologies, has been introduced to Ken by Meg and is considering an investment in XL. Timberlake's people have reviewed XL's business plan and have conducted enough due diligence to get comfortable with such an investment. The business plan calls for a first, Series A, round of financing of $3,000,000 in April 2021 and a second, Series B, round of $7,500,000 in April 2023. Timberlake's target rate of return is 50% per annum (compounded) for the Series A investment. They desire a target rate of return of 40% p.a. (compounded) for the Series B round.

XL's business plan anticipates that a strategic corporate investor will acquire XL in 5 years (i.e., in April 2026), this being the exit strategy for XL's investors. Proforma income statements provided in XL's plan project annual sales revenues to be $15,000,000 in 5 years under a "success" scenario. The investors believe that a typical price/revenues ratio for similar early-stage high-tech companies is about 5:1.

At the planned "liquidity event" in April 2026; what will Ken's shares in XL be worth and what annual rate of return (compounded) on his original $50,000 investment does this represent?

Range Interquartile Range Variance Standard Deviation Coefficient of Variation Show all hand calculations to receive full credit. Endowment income is a critical part of the annual budgets at colleges and universities A study by the National Association of College and University Business Officers reported that the 435 colleges and universities surveyed held a total of $413 billion in endowments. The 10 wealthiest universities are shown below (The Wall Street Journal January 27, 2009). Amounts are in billion of dollars. University Endowment (Sbillion) University Endowment (Sbillion) Columbia 7.2 Princelion 16.4 Harvard 36.6 Stamford 17.2 M.I.T. 10.1 16.1 Michigan 7.6 Teams AAM 67 Northwestern 7.2 Yale 229 a. What is the mean endowment for these universities? b. What is the median endowment? c. What is the mode endowment? . d. Compute the first and third quartiles. e. What is the total endowment at these 10 universities? These universities represent 2.3% of the 435 colleges and universities surveyed. What percentage of the total $413 billion in endowments is held by these 10 universities? f. The Wall Street Journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. What is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities? Given this situation, what are some of the steps you would expect university admin- istrators to be considering?64-475091194124319148610021576 MINDTAP ST 260-002 Homework #2 &Dun Today In 11 PM CST Activity Information Q What is the lots endowment at these 10 universities? (to 1 decimal) They union represent 2:3%% of the 435 colleges and universities surveyed. What peromage of the total Mil] billion is endow ments is held by Base 10 um i. The Wal Street Journal reported that over a recent five-month period, a downturn in the moonging how arup Baller amount of the decing in the total endow ints held by Pose 10 universites (to the seerest billor]? of the reps you would mapact price The isput in the box baice see proded, but may be me 10 MacBook ProQUESTION 5 Which of the following statements about the endowment effect is correct? 0 A. The endowment effect implies that the utility function needs to include ownership. 0 B. The endowment effect implies that a consistent utility function based only on allocations exists. 0 C. The endowment effect shows that preferences are transitive. O D.The endowment effect shows that preferences are not complete. When materials are requisitioned from the Raw Materials O points Inventory they can be classified as either direct materials (which are traced directly to the job) or indirect materials (which are items so insignificant that they are not traced directly to a job and instead are included in manufacturing overhead). What is the journal entry made when the material is classified as direct material? * * O Debit Work in Process Inventory, Credit Direct Materials O Debit Direct Materials, Credit Raw Materials Inventory O Debit Direct Materials, Credit Raw Materials Inventory O Debit Work in Process Inventory, Credit Raw Materials Inventory Time cards are collected and it is determined that total 0 points labor (both direct and indirect) is $4,890. What journal entry would be made when the weekly payroll is recorded? O Debit Work in Process Inventory, Credit Factory Payroll O Debit Factory Payroll, Credit Cash or Wages Payable O Debit Work in Process Inventory, Credit Wages Payable O Debit Direct Labor, Credit Work in Process Inventory1 RM 12 Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a O debit to Cash, credit to Credit Card Expense, and a credit to Sales O debit to Sales, debit to Credit Card Expense, and a credit to Cash O debit to Cash and a credit to Sales O debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales