i invested $100 million in a company and took 60% equity after 2 years it was shut down because of a fight between the CEO and COO. in the first year the company had a reveneu of $2000 per day. in the second year it had a revenue of$ 500 per day. it spent $ 50 as operating cost ,$10 on salary and $5 on tax. it had a debt of $12 million and total 56 million dollar of assets.
answer the follwing
a)how much is the valuation
b)how much money did i make
c)how much money would i get back when th company was shut down
d)what was my power in that company
e)who is a COO.
Answers
Answer:
the valuation is approx $175 million as 30% would be 50 million and 15% is 25 millionso the answer is in approximate.
you made $865,050. add 2000×365 and 500×365. substract it with 65×365+365.
you would get $26,400,000. asset minus liabilities multiplied by percentage of equity=liquidation value.
Shareholders determine action to be taken by the company, from election of directors to approval of corporate actions, by voting and normally each share allows one vote. Thus if a person owns fifty shares, that person has fifty votes, if the person has sixty shares, that person has sixty votes.
The COO is the senior executive who has been given a job or a task for supervising the day-to-day managerial and operational function of a business. The COO focal point is to execute the business plans. The COO must help the company to effectively grow and ensure its financial strength.