Question
Problem DescriptionShark Tank Basics The basic calculations of the Shark Tank are: The offer price ( P) is equal to the equity percent (E) times
Problem DescriptionShark Tank Basics The basic calculations of the Shark Tank are: The offer price ( P) is equal to the equity percent (E) times the value (V) of the company: P = E x V. Using this formula, the implied value is: V = P / E. So if they are asking for $100,000 for 10%, they are valuing the company at $100,000 / 10% = $1 million. Here is the valuation they should really use. First, define the sharks' added value (A) as the percent by which they will increase what the company is worth. Then you can define the total worth of the deal as: P = (E x V) - (A x V) With a little manipulation, you can see this is equal to: P = V x (E - A) So what does this formula tell you? If the added value that the shark brings is greater than the equity stake, the entrepreneurs should be willing to accept a negative price for the deal. Consider an example where the company is worth $1m, the equity stake is 20%, and the shark is going to add 30% in value. The benefit to the entrepreneur is the price minus the equity cost, plus the added value, or: P - 20% x $1m + 30% x $1m = P + $100,000 This means even if the entrepreneur accepts a price of zero they profit by $100,000. For this program you will ask the entrepreneur to enter the value of their company and how much added value each of 4 sharks will give them. Then you ask the entrepreneur to continually enter the equity and offer prices and provide the entrepreneur with value of the offer.
InstructionThe following code had been written for you
#includeusing namespace std; int main(){ double v, p, a, e; double shark1, shark2, shark3, shark4; int s; cout<< "Please enter the company value: "; cin>>v; cout<< "please enter the value added for shark 1: "; cin>>shark1; cout<< "please enter the value added for shark 2: " ; cin>>shark2; cout<< "please enter the value added for shark 3: "; cin>>shark3; cout<< "please enter the value added for shark 4: "; cin>>shark4;
Instruction
Your task is to write main loop for the program. Your loop will do three things:
Ask for inputs for price, equity, and shark number using the following prompts
"Please enter the price: "
"Please enter the equity: "
"Which shark (1,2,3,4): "
Calculate the value for a given shark using the formula "p - e*v + a*v" where...
p = Price
e = Equity
v = Value
a = Shark value
Output that final value, which looks like this:
"The final value would be XXXXX" (XXXXX is your value)
Your program should stop if the entrepreneur puts in zero for the price. You may also assume the entrepreneur will enter 0 for both the equity amount and shark number as well, but this should not affect the output of your program.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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