1. An investor purchases 500,000 shares with antidilution rights for $2.00 per share. In a subsequent financing round, a new investor invests $500,000 for 350,000 shares. How many new shares must the first investor be given under the antidilution provision?

2. An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to raise new capital in a distressed setting at $1.50 / share. Now, suppose there is a full ratchet for the old investor. Find the resulting values of each partys ownership and the respective ownership %.