Question

Lisa started a business 8 years ago with an initial investment of $250,000. it is now worth 6 times that amount. how much of her company can she sell and still be the majority owner? don't forget the dollar sign

Answer 1

Lisa can sell up to $1,500,000 of her company and still be the majority owner.

Step-by-step explanation:

To calculate how much of her company Lisa can sell and still be the majority owner, we need to determine the current value of her company. Since the initial investment was $250,000 and the company is now worth 6 times that amount, the current value is $250,000 x 6 = $1,500,000.

To be the majority owner, Lisa needs to hold more than 50% of the company's shares. Let's assume she wants to sell x amount of her company. The remaining value of her company after selling x amount will be $1,500,000 - x.

In order to still be the majority owner, Lisa must hold more than 50% of the remaining value of her company. This can be calculated using the following inequality: (remaining value of her company) > (50% x remaining value of her company).

Simplifying the inequality, we get: (1,500,000 - x) > (0.5 x (1,500,000 - x)).

By solving this inequality, we can find the maximum value of x that satisfies the condition, which would be the maximum amount of her company Lisa can sell and still be the majority owner.

Let's solve the inequality:

1. 1,500,000 - x > 0.5 x (1,500,000 - x)
2. 1,500,000 - x > 750,000 - 0.5x
3. 0.5x > 750,000 - 1,500,000 + x
4. 0.5x - x > -750,000
5. -0.5x > -750,000
6. 0.5x < 750,000
7. x < 750,000 / 0.5
8. x < 1,500,000

Therefore, Lisa can sell up to $1,500,000 of her company and still be the majority owner.