Reputation: 6625
I'm trying to workout a equity stake in an investment. I want to plug these numbers into a demo application that I'm building in Java script. It's the math part I'm having a problem working out.
I have been giving some numbers to deal with but not sure how they came up with the equity number.
So here is the apps numbers to be used.
So they worked out if an investor was to put in $133,333 they would get equity amount of 0.1 and a yearly return of 62,400
Ok so 0.1 x 624,000 = 62,400 How did they get the 0.1 value from putting in $133,333
for example lets say I had a filed where the user inputs an amount of 80,000 what would be the equity value for that given the above numbers.
If I can figure that part out I can add them all to variables in js and display accordingly.
Updated:
There is only one partner they would get 40% the other number of investors could be any amount but they would make up 60% of the rest of the equity.
Thanks
Upvotes: 0
Views: 243
Reputation: 1253
From the numbers you have provided the $800,000 must be the value of the investors 60% stake not of the whole company.
The current investors would be looking to sell one sixth of their total stake which is equal to 10% of the company for $133,333.
Upvotes: 2