Bart purchased three-quarters of a 32% interest in a Swiss Chalet franchise for $270,000. What is implied value of the franchise?
A) $115,200
B) $632,800
C) $980,750
D) $1,125,000
E) $1,625,000

Question

Quizplus · Accepted Answer

Bart's purchase represents 75% of a 32% interest, which is 24% of the franchise. If 24% is valued at $270,000, then the full value (100%) of the franchise is $270,000 / 0.24 = $1,125,000.

Bart Purchased Three-Quarters of a 32% Interest in a Swiss