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Two friends M and N have 40% and 60% share in a business. After some

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proxy__guy123
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Two friends M and N have 40% and 60% share in a business. After some [#permalink] New post   19 Jan 2024, 03:38
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Two friends M and N have 40% and 60% share in a business. After some time a third friend joined the business by investing Taka 500,000 and acquired 20% shares in the business. What is the share of M in the business now?

(A) 500,000
(B) 800,000
(C) 900,000
(D) 1000,000
(E) None of these
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B
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proxy__guy123
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Re: Two friends M and N have 40% and 60% share in a business. After some [#permalink] New post   19 Jan 2024, 03:40
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proxy__guy123 wrote:
Two friends M and N have 40% and 60% share in a business. After some time a third friend joined the business by investing Taka 500,000 and acquired 20% shares in the business. What is the share of M in the business now?

(A) 500,000

(B) 800,000

(C) 900,000

(D) 1000,000

(E) None of these








Remaining share=(100-20)=80%

M has=40% of 80%=32%


20% of the business=500,000
so, 32% of the business=(500,000*32)/20= 800000 taka
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Re: Two friends M and N have 40% and 60% share in a business. After some [#permalink] New post   19 Jan 2024, 08:41
proxy__guy123 wrote:
Two friends M and N have 40% and 60% share in a business. After some time a third friend joined the business by investing Taka 500,000 and acquired 20% shares in the business. What is the share of M in the business now?

(A) 500,000

(B) 800,000

(C) 900,000

(D) 1000,000

(E) None of these

500,000 and acquired 20%

Thus, M + N now have 80% Capital....

If 20% = 500000

So, 80% = 500000/0.20*0.80 = 2000000

Now share of M here is 40% of 2000000 = 800,000, Answer will be (B)
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Re: Two friends M and N have 40% and 60% share in a business. After some [#permalink] New post   19 Jan 2024, 09:41
Post-money or Pre-money investment? 🙃

POST-money evaluation:
M 40%
N 60%
Valuation X

Taka puts 500K and acquired 20% of the post-money valuation
so new value is X'+500K -> and T owns 20% of the new valuation ( which values 500K) -> the total post-money valuation is 2.5M
so the remaining 80% of the company values 2M -> and M has 40% of that -> 800K
or / 32% of total 2.5 => 800K
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Re: Two friends M and N have 40% and 60% share in a business. After some [#permalink]
19 Jan 2024, 09:41
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