Jeremy Founded a Company Which of the Following Is Closest to the Percentage of Shares

question 68

Multiple Choice

Jeremy founded a company. He issues 200,000 Class A preference shares for his own $100,000 investment. He then goes through three further rounds of investment, as shown below: $$\begin{array} { l c c } \text { Round } & \text { Price } & \text { Number of Shares } \\\hline \text { Class B } & \$ 1.00 & 500,000 \\\text { Class C } & \$ 1.50 & 300,000 \\\text { Class D } & \$ 2.25 & 400,000\end{array}$$ Which of the following is closest to the percentage of the company owned by the Class D investors?

• A) 46%
• B) 25%
• C) 33%
• D) 29%

Determine sales dollars necessary to obtain a specific after-tax profit.

Calculate total contribution margin for a period.

Identify break-even points in both dollar sales and units.

Understand and apply the principles of activity-based costing to break-even analysis.

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Definitions:

Renunciation

The formal rejection of a claim, right, or possession, usually involving a legal or official declaration.

Forbear

To refrain from enforcing a right or claim, or to abstain from doing something.

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's performance, rather than a promise in return.

Prior Unenforceable Obligations

Refers to commitments or agreements that were not legally binding or couldn't be enforced due to certain conditions or deficiencies in their formation.