When assigning an option to another investor, how much is a typical assignment fee?AOBDHalf of the potential profit in the deal.The same 6% of the sales price that a real estate agent would expect.The same amount you paid to secure the option from the seller.10% of the equity in the deal, or a flat rate of $2,000-$3,000.

An assignment fee is a fee paid by one party to another in exchange for the assignment of a contract…

Answered: When assigning an option to another…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

Which of the following scenarios accurately reflects the meaning of the profit leverage effect? Group of answer choices With a 7.6% profit margin, decreasing your cost of goods sold (COGS) by $10,000 increases your pre-tax profits by $10,000, but increasing your sales by $10,000 only increases your pre-tax profits by $760. When operating with a 7.6% profit margin, your cost of goods sold will be $10,000 as long as your sales exceed $10,000. With a 7.6% profit margin, every additional $10,000 in sales increases your pre-tax profits by $10,000, while every $10,000 saved in purchasing increases your pre-tax profits by just $760. If your profit margin is 7.6%, every $10,000 saved in purchasing lowers your COGS sold by $760.
ABC Corporation has recently given out a nine-month contract to a construction subcontractor. At the end of the first month, it becomes obvious that the subcontractor is not reporting costs according to an appropriate WBS level. ABC Corporation asks the subcontractor to change its cost reporting procedures. The subcontractor states that this cannot be done without additional funding. This problem has occurred with other subcontractors as well. What can ABC Corporation do about this?
A group of doctors is considering the construction of a private clinic. IF the medical demand is high (favorable market for the clinic), the physicians could realize a profit of P1,000,000. If the market is not favorable, they could lose P400,000. If they don’t proceed at all, there is no cost. In the absence of any market research, the best the physician can guess is that there is a 50-50 chance the clinic will be successful. Required: Construct a decision tree to help analyze this problem. What should the doctors do?
21) It is the core executive team, CEO, COO, and CTO, that makes decisions on strategy. True or False? True False
“Multisource feedback is a tool used to obtain feedback from individuals at various levels of the organization. Frequently, the target employee (the one receiving the feedback) selects the individuals who will provide feedback. What are some potential drawbacks of allowing the target employee to select his or her raters? Should the target employee’s supervisor be responsible for selecting raters? How else could raters be determined? How might we incorporate technology into this process?”
A hiring manager told a candidate that if they joined the company , they would be promoted within 6 months , would be given an office , and would be given a substantial raise . The candidate took the job based on this information . After the 6 month period , the employer did not come through with these promises and stated the reason was financial constraints . 1. What is this an example of ? 2. Discuss how employees can protect themselves from these types of situations ?
An elevator company has redesigned their product to be 50% moreenergy efficient than hydraulic designs. Two designs are beingconsidered for implementation in a new building.(a) Given an interest rate of 20% which bid should be accepted?Alternatives A BInstalled cost $45,000 $54,000Annual cost 2700 2850Salvage value 3000 4500Life, in years 10 15
2 true or false If the decision doesn’t involve risk and uncertainty, utility is the numerical score to measure the attractiveness of a course of action.
You are entrusted with deciding whether to make or buy software. The make decision has a setup cost of $15,000 and a monthly maintenance cost of $1,200. A vendor will sell the software for an initial cost of $11,400 and a monthly cost of $3,000. For how many months must the company use this software to support a make decision?
Linda is upset: she has to make another trip to the dry cleaners because they did not get a stain out of her new jacket as they had promised. This is an example of A.performance risk B.financial risk C.time-loss risk D.opportunity risk
what is the design option that involves embracing or conceding to the situation with minor modifications and awareness about the nature and level of risk/reward compliance associated with the opportunity,obstacle, or obligation? a. avoid b. share c. control d.accept what is the term used to describe the positive impact on the organiztion? a.profit b.reward c.risk d.benefit
The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of the first $150,000 profit, and then 10% of profit over $150,000. Purchase price for the company is set at 4.5 times earnings (profit), computed as average annual profitability over the next five years. a.Plot the annual compensation of the vice president as a function of annual profit. b.Assume the company will be worth $10 million in five years. Plot the profit of buying the company as a function of annual profit. c.Does this contract align the incentives of the new vice president with the profitability goals of the owners?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS