FIN 305 Study Guide - Midterm Guide: Killer Application, Opportunity Cost
13 Nov 2015
School
Department
Course
Professor
Document Summary
5 friends decide to collaborate on coding killer apps for iphones. Each invest k in their business in exchange for 2500 common shares. They work around the clock at a feverish pace and the volume and quality of their apps is sick. They have just received an offer to buy the company for m cash. To get annualized return, multiply result by 2. Steve, bill, and marissa decide to cofound a business. Steve contributes 000, bill contributes 000 plus his patent on a brand new technology. Marissa contributes nothing but was lured away from a job where she was making 000 annually and has agreed to work for 0 pay for one year. The group agreed that the fair market value of bill"s patent was 000.
