Finance

Allgood has been keen to join an entrepreneurial firm and increase her stock of wealth. She envisages a situation where she can buy into a start up firm and make millions when the firm lists on the stock exchange. Her current obligations leave her financially strapped at a time when she needs to save more in anticipation of future expenses related to the unborn child. Garibaldi is very impressed and appears determined to hire her at all costs. His record of accomplishment reveals that anybody working for him is bound to make millions after a few years. Based on these facts, Allgood should take the job at Globevault, accept a percentage of pay in stock options, and wait a few years to see if the value of her shares will skyrocket thus transforming her into a millionaire.

Allgood currently earns 115,000 while Dwight receives 105,000. Their combined income without bonuses is  220,000 per annum that translates to around  18, 335 per month.

They took out a fixed mortgage of 320000 at 6 interest that comes to 339,200. Per annum, they were to pay  9691.4 or  807.6 per month towards this account. Forty percent of the mortgage went to paying monthly assessments, taxes, and insurance. This works out to 11,306. Household expenses, groceries, and utility payments are equal to thirty-five percent of the monthly mortgage payment, which comes to 282.66. School loan repayments total to 425 per month, while recreational expenses amount to  2187.5. Per month, they spend  15,008.76, which is the bare minimum they need to survive.

The unborn child will place an additional burden of  19,000 per annum to their budget so when Allgood is negotiating for her salary she should factor in this expense. She should propose an increment of at least 30 of her current annual pay as the starting point, which works out to  149,500. Allgood should also ask for a 5 ownership stake in form of stock options.

As a rule, start up pay lower salaries that those offered in the industry. Garibaldi should offer her an increment of 10 and an ownership stake of up to 3 in the company. In the event of a successful public listing, Allgood would achieve her goal of financial prosperity.

In the Midway Games deal, Garibaldi earned  24,000,000, the two levels of management made  8,000,000 while the investors made 8,000,000.

The pre money valuation for Globevault was  10,713,043 while the post money valuation is 13,913,043.
After five years, the potential future value of Globevault will be  42,330,331.