the question

The game unfolds in two stages. In the first stage speculators buy a business from its retiring founder. In the second stage the speculators try to make a profit by selling the business to someone who will take over and manage the business (hopefully better than the founder did). Entrepreneurs are given instructions reading: You have started a successful business. Now it is time to sell it and retire. Your business earns $5 million per year. Negotiate a sale price. It may be useful information that interest rates are 6.25%. Speculators are given instructions reading: You want to buy stock in a business and then later you will have an opportunity to sell it, maybe, at a profit. Each business earns different profit, but you have a right to know the profits of the business before you buy. Interest rates are 6.25%. The entrepreneur and speculators then negotiate a price. Considering the information given, what price should a speculator pay for this business? ___________________________________ In the second stage of the game, the speculators turn around and try to sell the business to the managers, hopefully at a profit. The crucial difference between the two stages is the profitability of the business. The managers are given instructions reading: You are in the market to purchase a business. You have such confidence in your business ability that you think you can increase its annual profits by 50%. Negotiate a purchase price. You may want to know that interest rates are 6.25%. The speculators and managers then negotiate a price. Considering the information given, what price should a manager pay for this bond? ___

Answers

Related Questions

Social Science : Judaism Assignment.edited...

Running head: JUDAISM ASSIGNMENT.Judaism Assignment.Students Name.Institutional Affiliation(s).1JUDAISM ASSIGNMENT.2Judaism Assignment.Religious pract...

Marketing : Marketing 2...

Running Head: MARKETING MIX1Marketing Mix: Netflix and 21st Century FoxStudents NameInstitution of AffiliationDateMARKETING MIX2Marketing Mix: Netflix...

Computer Science : Bitcoin...

Running head: BIG DATA AND DATA SCIENCEBig Data and Data ScienceNameInstitution1BIG DATA AND DATA SCIENCE2Big Data and Data ScienceSince the introduct...

Psychology : Gm Foods...

INSERT SURNAME HERE 1Genetically Modified FoodsInstitutional AffiliationDateGenetically Modified FoodsIntroductionIn this particular essay what will b...

Computer Science : Uci Canvas.edited...

1Running Head: UCI CANVAS TUTORIALUCI Canvas TutorialStudents NameInstitutionDate2UCI CANVAS TUTORIALUCI CANVASUCI Canvas stands at the University of...

Powerpoint : Presentation2...

Information SystemsNameInstitution AffiliationTrends in technology The trends in technology are important as they enhance various aspects ofsecurity a...

Computer Science : Information Security...

Running head: INFORMATION SECURITY1Information SecurityNameInstitutional AffiliationINFORMATION SECURITY2Information SecurityIntroductionInformation s...

Computer Science : Risk Management...

Running head: RISK MANAGEMENT1Risk ManagementStudents NameInstitutional AffiliationCourseDateRISK MANAGEMENT21. In which step the risk management proc...

Business : Article Summary...

Running head: SUMMARY1Article SummaryNameUniversity NameCourseFebruary 03, 2020SUMMARY2Summary of the ArticlesAsset Allocation by Roger GibsonIn this...

Marketing : 18451342...

Running head: SOCIAL MEDIA MARKETINGSocial Media MarketingNameInstitution1SOCIAL MEDIA MARKETING2Mission StatementFor H&M, its mission is to create a...

Management : Heineken Holding...

Running head: BUSINESS ETHICS1Business EthicsNameInstitutional AffiliationBUSINESS ETHICS2Business EthicsHeineken HoldingHeineken is a Dutch based bre...

Management : Final Project Part One Milestone One...

Running head: MILESTONE ONE: SELF-ASSESSMENTFinal Project Part One Milestone One: Self- AssessmentName:Affiliation:Course Code:Instructor:February 2,...

Psychology : Age Related Changes...

Running head: AGE-RELATED CHANGESAge-Related ChangesStudents NameInstitutional Affiliation12AGE-RELATED CHANGESIntellect and AgingThere are multiple w...

Law : Immigration Laws...

Running head: IMMIGRATION LAWS1Immigration LawsNameInstitutionIMMIGRATION LAWS2Immigration LawsThe immigration laws and regulations are aimed at reduc...

Engineering : 20200204174036memo Lab.edited...

TO:CC:FROM:DATE:RE:1.Include a screenshot of your orebody solid. What are the dimensions of the orebody?Include the height, width, and length.Screensh...

Computer Science : Business Requirements Document...

Running head: BUSINESS REQUIREMENTS DOCUMENTBusiness Requirements DocumentNameInstitution of AffiliationDate1BUSINESS REQUIREMENTS DOCUMENT2Scope of S...

Marketing : 18450934...

Running head: SOCIAL COMMUNITIES1Social CommunitiesNameInstitutionSOCIAL COMMUNITIES2There are different ways through which companies can take advanta...

Business : Assess The Components Of Cash Flow Stat...

Running Head: ASSESS THE COMPONENTS OF CASH FLOW STATEMENTSAssess the Components of Cash Flow StatementsStudents NameInstructorInstitution Affiliation...

Sociology : Inequality...

Running head: COSTS OF PREJUDICE1Costs of PrejudiceInstitution AffiliationDateCOSTS OF PREJUDICE2Linkhttps://www.al.com/live/2010/11/general_electric_...

Computer Science : Iot 77...

Running Head: THE INTERNET OF THINGSTHE INTERNET OF THINGSStudents NameInstitutionDate1THE INTERNET OF THINGS2IntroductionThe world we currently live...

Management : Organizational Behavior And Job Satis...

Running head: ORGANIZATIONAL BEHAVIOR AND JOB SATISFACTIONOrganizational Behavior and Job SatisfactionStudents NameInstitutionYear1ORGANIZATIONAL BEHA...

Nutrition : Mapa Conceptual...

Encabezado: MAPA DE CONCEPTOS PLANIFICACION DE DIETAMapa de Conceptos Planificacin de DietaNombre de la InstitucinMdulo 3Mapa Conceptual1MAPA DE CONCE...

Writing : V253 Harriet Robinson.edited...

Running head: HARRIET ROBINSONS MEMOIRHarriet Robinsons MemoirStudent NameCourseInstitutionDate1HARRIET ROBINSONS MEMOIR2Part I: Harriet Robinson, Ear...

Business : Balance Of Payment Bop...

Running Head: BALANCE OF PAYMENT (BOP)Balance of Payment (Bop)NameInstructorInstitutional AffiliationDate12BALANCE OF PAYMENT (BOP)IntroductionBalance...

If you didn't find the right answer

Ask Your Questions, We'll notify you once someone answers it