Assignment 2: Discussion—Decision Case—World.com

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:

1. 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.
2. 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.
3. 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.