Calculate the difference in Max’s ownership in the following scenarios: SpecialStuff raised its A round at $1.50 per share. Max invested $1.5 million for 1 million shares and 30% ownership. Now SpecialStuff is raising a B round, but the market has turned against it and Acme will only pay $1.00 per share for 1 million shares. (Assume that Max doesn’t participate at all and allows Acme Ventures to take the whole round.)

a. What if Max has full ratchet antidilution?

b. Weighted average?

c. If Max participates pro rata to her ownership, how will A and B change?