Securities: 2,000,000 shares of Series B Preferred Stock ("Shares"). Investors: The Shares will be offered only to "accredited investors" as defined in Regulation D under the Securities Act. Aggregate Proceeds: $16,000,000 Price: $8.00 per Share (the "Sale Price"). Placement Agent: Morgan Stanley & Co. Incorporated (the "Placement Agent") on a "best efforts" basis. The Company will pay in cash a placement fee equal to 5% of the aggregate offering proceeds.
The capitalization of the Company giving effect to the Financing will be as follows: Name or Entity Class of Stock Number of Shares Total Percentage Ownership Existing Investorsa Common (Class A and B) 8,086,099 53% Series A Preferred 2,220,726 15% Warrants to Purchase Series A Preferred 333,110 2% New Investors Series B Preferred 2,000,000 13% Reserved for Directors, Management & Employees Common (Class A and B) 2,582,047 17% Total 15,221,982 100%
Assume you are Apex investors and you now will calculate company value and share price. The discount rate you expect is 60%
1994-1999
QThe revenue multiple of comparable companies of AccessLine is ?
Q the terminal value of AccessLine using revenue multiple is?
Q At the time of exit, investors investing in the focal round may expect their wealth to be?
Q Based on revenue multiple, the final ownership of focal round of investors is expected to be ?
Question 2: Consider a country producing milk and cookies using labor and capital as inputs described by a Heckscher-Ohlin model. The following table provides outputs for goods and factor endowments before and after a change in the endowments. Output and Endowments Initial After Endowment Change Milk Output, QM 100 gallons 1 10 gallons Cookie Output, Qc 100 pounds 80 pounds Labor Endowment, L 4000 hours 4200 hours Capital Endowment, K 1000 hours 1000 hours a) Calculate and rank the magnification effect for quantities in response to the endowment change. b) Which product is capital intensive? Show why. c) Which product is labor intensive? Show why.Harbaugll, et a1. Show that 1) Only young children display the endowment effect. 20 year olds no longer display an endowment effect. 2] Adults display an endowment effect, but not young children. 3) Infants display an endowment effect before they are able to speak, and the effect becomes more intense as they grow older. 4] Both young children and 20 year olds display an endowment effect. ACCOUNT ACCOUNT CODE ACCOUNT NAME CODE ACCOUNT NAME 100-199 Current Assets 400-499 Equity Accounts 101 Checking Account 400 Common Stock 102 Savings Account 410 Retained Earnings 103 Petty Cash 120 Accounts Receivable 500-599 Revenues 125 Allowance for Doubtful Accounts 501 Cash Sales 130 Notes Receivable 502 Credit Sales 150 Inventory 510 Sales Returns & Allowances 160 Supplies 511 Sales Discounts 170 Prepaid Rent 520 Interest Revenue 180 Prepaid Insurance 530 Miscellaneous Revenue 200-299 Noncurrent Assets 600-799 Expenses 200 Land 600 Cost of Goods Sold 210 Buildings 611 Wages Expense 215 Accumulated Depreciation-Buildings 612 Commissions Expense 230 Equipment 613 Payroll Tax Expense 235 Accumulated Depreciation-Equipment 620 Rent Expense 240 Furniture & Fixtures 630 Insurance Expense 245 Accumulated Depreciation-Furniture & Fixtures 640 Supplies Expense 250 Other Assets 650 Bad Debt Expense 701 Depreciation Expense-Buildings 300-399 Liabilities 702 Depreciation Expense-Equipment 300 Accounts Payable 703 Depreciation Expense-Furniture & Fixtures 310 Wages Payable 710 Income Tax Expense 321 Employee Income Tax Payable 322 FICA Tax Payable 900-999 Summary Accounts 323 Federal Unemployment Tax Payable 910 Income Summary 324 State Unemployment Tax Payable 330 Accrued Interest Payable 360 Other Liabilitiesfor DM562,500. The offer requested payment as follows: DM 62 500 as a cash down payment at the time the offer was accepted by Pelzer DM 2507000 to be paid three months after the offer was accepted, by which time Culver would have shipped the first half of the order. DM 250.000 to be paid six months after the offer was accepted, by which time Culver would have shipped the last half of the order DM 562 500 The price of DM562,500 was derived by pricing the order at $225,090 and multiplying this dollar price by DM2.50. the approximate exchange rate on February 1. The actual exchange rate of February I had been DM2 4734/5. but Turner rounded this up because of a weakness in the mark since the first of the year, Exchange quotations for the first nine weeks of 1982 are given in Exhibit 3. Exhibit 1 Culver Radio, Inc., Statement of Income and Retained Earnings, years ending December 31. 1982, and December 31. 1981 (unaudited) 1982 198I Sales $ 1.813.297 $ 1,855.585 Cost of Goods Sold Inventory, January 361,327 273,056 Purchases of materials-net 1,065,932 1,072 672 Less inventory. December 31 438 402 361, 128 Cost of materials consumed 626,531 711.344 Direct labor 247,860 222,912 Factory overhead 283,832 20 200 Cow of Goods Sold 1.158.223 1.194.456 Gross Profit Expenses 655,074 465.402 Selling expense Warehouse and delivery expense Administrative expense 466,360 465,402 Total Expense 111,244 76,948 Net (loss) from Operations 187.616 193.138 Other Income Interest income Miscellaneous income Bad debt recovered (74.359) Total Other Income (1 10,146) Net Loss Before Provision for: Federal and state taxes 28 339 31 395 Provision for federal and state taxes 74,178 Net Loss 58,349 Retained Earnings, January 1 Retained Earnings, December 31 86 688 105.959 (25.458) 31,600 280 6.532 (23,738) 25,068 224,805 199 737 201,067 244,805
