Company A raises £300k of seed funding from a VC firm in exchange for a 20% stake. The agreed share price for the round is £1 and the VC firm has an exist horizon of 10 years.
At the ended of year 3, Company A needs to raise an additional £4m of funding. The new VC investor in round 2 expects to make a return of 30%. If the exit horizon is still 10 years, what is the share price for round 2 if the VC investor from the first round is to achieve an annual return of 30% at exit.
Make the capitalisation tables, showing the 1) pre-and post-money valuations, 2) the shares and 3) stakes owned by the founders and the two VC firms.
In: Finance
Consider any recent financial news on tv, internet, newspaper, etc., and comment on how the news might affect the market for a particular good. First, decide whether demand or supply or both are affected. Second, would this cause an increase or decrease in demand, supply, or both. Finally, comment on the implications for the new equilibrium quantity and price. For example. Recent calls for a strike against UBER might cause a change in the demand for UBER stock. Since the news are negative, it might be expected the demand to decrease (fewer people wanting to own the stock). Finally, the decrease in demand causes a drop in the stock price of UBER and fewer people might want to buy the stock.
In: Economics
Complete a table for Q, FC, VC, TC, MC, MR, Price, TR and Profit using reasonable numbers for a perfectly competitive firm. For price, use a number equal to the number of letters in your first and last name (maximum 18).My first and last name is Maria Cisneros. For Q use 0, 1, 2, 3, 4, 5, 6, 7, 8 For MC use $3, 4, 5, 7, 9, 13, 16, 21. Then make up numbers for FC, VC, TC, MR but make certain that they correspond to the numbers you already used for Price and MC. Then find and show the profit maximizing level of output showing that it is where MR = MC. (okay if your quantity is in between two numbers). You may need to play around with the numbers to make this work out. What was the one most important concept you learned in the readings on costs of production and competitive markets? In a one page essay, summarize this concept, explain how it changed your prior understanding, and show that this concept is important by applying it to a real life situation. Please make certain that this essay is based on your own understanding, not the understanding of someone else you found on the internet. Based on your own experience, describe a business that is quite competitive. Which of the criteria for a perfectly competitive firm are met by this business—and which are not? (Identical products; price taker; low economic profits) For this business give examples (description of the cost; no dollar amount needed) of the following and explain why they are examples of this type of cost Explicit fixed cost Explicit variable cost Implicit fixed cost Implicit variable cost.
In: Economics
Hyperion Inc., currently sells its latest high-speed colour printer, the Hyper 500, for $ 342. Its cost of goods sold for the Hyper 500 is $ 195 per unit, and this year's sales (at the current price of $ 342) are expected to be 19,000 units. Hyperion plans to lower the price of the Hyper 500 to $ 293 one year from now. a. Suppose Hyperion considers dropping the price to $ 293 immediately, (rather than waiting one year). By doing so it expects to increase this year's sales by 27 % to 24,130 units. What would be the incremental impact on this year's EBIT of such a price drop? b. Suppose that for each printer sold, Hyperion expects additional sales of $ 76 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 65 % on ink cartridges. What is the incremental impact on EBIT for the next three years of dropping the price immediately (rather than waiting one year)? The incremental change in EBIT for the first year is ?? The incremental change in EBIT for the second year is ? (Round to the nearest dollar.) The incremental change in EBIT for the third year is ? (Round to the nearest dollar.)
In: Finance
This is your first week at a mutual fund as an analyst. Your
boss asked you to evaluate the
price risk of two 30-year bonds – Bond A and Bond B.
Bond A has a coupon rate of 4%, while Bond B has a coupon rate of
8%. Both bonds pay
their coupons semi-annually
.
A) Construct an Excel spreadsheet showing the prices of each of
these bonds for yields to
maturity ranging from 1% to 15% at intervals of 1%. Column A should
show the yield
to maturity (ranging from 1% to 15%), and columns B and C should
compute the prices
of the two bonds (using Excel’s PV function) at each interest
rate.
B) In columns D and E, compute the percentage difference between
the bond price and its
value when the yield to maturity is 6% (initial yield to maturity)
for bonds A and B,
respectively [ = {(Price (at current YTM) – Price (at initial YTM
of 6%)}/ Price (at
initial YTM of 6%)].
| Face value | $1,000.00 |
| Coupon rate bond A | 4.00% |
| Coupon rate bond B | 8.00% |
| Time | 30.00 Years |
| Initial Yield to Maturity | 6.00% |
In: Finance
Consider a hypothetical futures contract in which the current price is $82. The initial margin requirement is $5, and the maintenance margin requirement is $2. You go long 20 contracts and meet all margin calls but do not withdraw any excess margin.
The settlement price and the spot price of the underlying from day 0 to day 6 look like the following:
|
Day |
Settlement Price |
Spot Price of the Underlying |
|
0 |
82 |
80 |
|
1 |
84 |
81 |
|
2 |
78 |
80 |
|
3 |
73 |
75 |
|
4 |
79 |
77 |
|
5 |
82 |
86 |
|
6 |
84 |
90 |
(1) Suppose you receive margin call in the beginning of each day, when your account is equal and less than maintenance margin. The first day that you will receive margin call should be Day .
(2) The total amount that you are going to put in your account, from day 0 to day 6, will be
(3) The total loss and profit from Day 0 to Day 6, if the long holder always stays in the market, should be
(4) The ending balance in Day 3 should be
In: Finance
Sweet Corporation is in the dairy business. Products go through two production departments (A first, then B). Data from those departments for October 2020 are presented below.
Complete the four steps necessary to prepare a production cost
report.
Department A
Department B
Beginning work in process
Beginning work in process
Number of units
1,000
200
% complete for materials
100%
% complete for transferred-in
100%
% complete for conversion
60%
30%
Total materials cost
$24,000
-0-
Total conversion cost
$30,000
$40,000
Total transferred-in costs
$15,000
Department A
Department B
Ending work in process
Ending work in process
Number of units
600
300
% complete for materials
100%
% complete for transferred-in
100%
% complete for conversion
30%
40%
Sweet Corporation started 2,600 units of product during the month
in department A. Costs incurred in department A for October 2020
totalled $64,000 for material and $132,000 for conversion.
Additionally, department B incurred conversion costs in October
2020 of $600,000. Department B adds no materials to the
product.
Instructions
a. Journalize the transfer of goods from department A to department B during October 2020. Sweet Corporation accounts for its costs using the weighted-average method.
$226,163
b. Prepare a production cost report for department B for October
2020.
Total cost of units completed: $833,123 (Weygandt, 12/2017, pp.
159-160) Weygandt, J. J., Kimmel, P. D., Kieso, D. E., Aly, I. M.
(2017). Managerial Accounting: Tools for Business Decision-Making,
Canadian Edition, 5th Edition. [[VitalSource Bookshelf version]].
Retrieved from vbk://9781119403999 Always check citation for
accuracy before use.
In: Accounting
7) A food company is developing a new granola bar, and its market analysts are currently working on preliminary studies of the packaging design. To help with a marketing strategy, the company was first interested in whether the appeal of the packaging design for the new product (and hence the appeal of the product itself) would be different for each gender. There were 100 male and 100 female volunteers available for purposes of evaluation. Both genders rated the design on a scale of 1 to 10, 1 being "very unappealing" and 10 being "very appealing." The data summaries follow. n x-bar s Females 100 8.0 2.0 Males 100 7.4 1.5 Let mu1 and mu2 represent the mean ratings we would observe for the populations of females and males, respectively, and assume our samples can be regarded as samples from these populations. You may assume the 2-sample t-procedures are safe to use. Does the data given evidence of a difference in appeal for females and males? To explore the suspicion above, conduct a significance test. Calculator output of the test is given below. a) The null hypothesis is μ1__μ2 Fill in the blank as appropriate. b) Give the test decision: (reject or do not reject) c) Evidence _______________(favors or does not favor) that there is a difference in the mean appeal ratings of females and males. d) A 95% confidence interval for the difference in the mean appeal rating between females and males is 0.6±0.493 e) Interpret this by filling in the blanks as appropriate: 95% confident that the true mean difference in appeal rating between females and males is between ______________ and ___________________ (give three decimals for bounds). This supports the decision of test because 0 ____________(is or is not) between the bounds.
In: Statistics and Probability
An economy has the production function Y=0.4(K+N). In the current period, K=100 and N=100.
Graph the relationship between output and capital, holding labor constant at its current value. What is the MPK?
Graph the relationship between output and labor, holding capital constant at its current value. Find the MPN for an increase of labor from 100 to 110. Compare this result with the MPN for an increase in labor from 200 to 210.
In: Economics
In: Biology