Ever the risk-taker, Maxine has invested in another of Sam’s companies. This time, she pays $3 million for 30 percent of Special Stuff (SS). Calculate the payout table and draw the graphs for Max and Sam in the following situations:

a. The deal is structured as all-common, and PredatoryPurchaser (PP) offers Sam $3.5 million for the company.

b. The deal is structured as a redeemable preferred with cheap common deal and PredatoryPurchaser

(PP) offers Sam $3.5 million for the company.

c. The deal is structured as convertible preferred and PP offers Sam $5 million for the company. At what price will Max convert to common?

d. SS goes public at a valuation of $20 million and Max owns participating convertible preferred.

e. OtherStuff, a private company, buys SpecialStuff for $7 million. Max owns participating convertible preferred.