Assume Max and Sam are negotiating their first round in SpecialStuff. Sam is sure that $3 mm is all that will be needed, but Max believes it will take at least twice that. The round is for $3 mm and the parties have narrowed the range to the 30 percent ownership buying 25 to 40 percent.

a. What terms and structures do you think will be in the final deal?

b. How will they be affected by price?