SpecialStuff needs another $3 million. Acme, happy with its returns on Sam’s first company, eagerly agrees to participate, investing $4 million for 20 percent of the company. Assume the first round was as in question 6 and each owns convertible preferred stock.

a. How much do Max and Sam now own?

b. Create payout tables for exit values at $4 million, $8 million, $12 million, and $20 million for each participant assuming pooled seniority.

c. . . .with Acme senior to Max and Sam.