Question

Thompson, Daulton and Boyle own a a company in the ratio of 8:4:2 respectively. Daulton would like to sell his portion of the

company to Thompson. If the company is now worth 3.78 million, how much would Thompson need to pay for Daulton's part
of the company? Round your answer to the nearest dollar.

Answer 1

Explanation:

First, we need to find out how many parts the company is divided into:

8 (Thompson) + 4 (Daulton) + 2 (Boyle) = 14 parts

Now, we need to find the value of one part:

Company worth = 3.78 million

Value per part = 3.78 million / 14

Value per part = 0.27 million (approximately)

Since Daulton owns 4 parts:

Value of Daulton's part = 4 * 0.27 million

Value of Daulton's part = 1.08 million

So, Thompson needs to pay about $1.08 million for Daulton's part of the company. In dollars, that's approximately $1,080,000.