SOLUTION: 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 own

Algebra.Com
Question 1204705: 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?
Answer by ikleyn(52794)   (Show Source): You can put this solution on YOUR website!
.

I am not a business person and never learned business at university.

But my "naive" suggestion is as follows:


    After 8 years of successful functioning, Lisa's business is worth 6 times $250,000, i.e. $1,500,000.

    It means that the company's shares cost now $1,500,000, in total.


    So, she could keep more than half in her possession and to sell the rest,

    still remaining a major owner.

--------------

If even me, without having any special education in the area, can solve this problem,
it means that its level of complexity is as 2 x 2 = 4, and everybody can solve it.


Do not understand, for what reason it was posted to the forum.
Only a smallest drop of common sense is needed for solving.



RELATED QUESTIONS

Ten years ago, Lisa bought a hair salon for x dollars. She built up the business and it... (answered by knighty2002uk)
1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his... (answered by ikleyn)
Doubling time of an investment with continuous compound interest is 12.4 years. If the... (answered by lwsshak3)
The doubling time of an investment with continuous compound interest is 12.6 years. If... (answered by Theo)
Anthony invested a sum of money 6 yr ago in a savings account that has since paid... (answered by lwsshak3)
The doubling time of an investment with continuous compound interest is 12.2 years. If... (answered by ikleyn)
Grace invested money at Edhelper bank two years ago. SHe signed up for a CD that paid 4%... (answered by josmiceli)
4. Claire is considering investing in a new business. In the first year, there is a... (answered by ikleyn)
The formula for an investment worth with interest compounded annually is A = P(1 + i)^n,... (answered by Theo)