Question

A reality TV show features business owners who try to persuade investors to put money into their companies in exchange for partial ownership of the company.

To make a fair deal, the owner estimates the total value of the business and sets the amount of the investment based on the size of the share, as a percentage. For example, an investor could provide $3 million in exchange for 30 percent ownership stake in a company that is worth $10 million.

Abbey owns a company that sells cat toys. She wants an investor to put $100,000 into her company so that she can expand the business.

Which equation correctly relates an investor's share, S (as a percentage), to the total value of Abbey's company, V?

Answer 1

C (100% sure now...)

For instance, if Abbey's total value was 1,000,000, then S would be 10% or 0.1. 100,000/1,000,000 is 0.1, which is S.