Assignment 2: Discussion—Decision Case—World.com
Review Decision Case 1 (World.com) on page 186 in chapter 3. By Saturday, February 28, 2015, analyze the data presented in the case scenario and address the following questions in your initial post:
- Assume that the most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price.
- Nicholas states that the least he will take for the business is an amount equal to the business’s stockholders’ equity balance on January 31. Compute this amount.
- Under these conditions, how much should you offer Nicholas? Give your reason.
By the end of the week, provide substantive responses to at least two other students’ initial posts.