1. Square, Inc. raised its first round of venture capital by issuing 10 million shares of Series A preferred stock for $1 per share, which is convertible into common stock on a 11 basis and has a nonparticipating 1x non participating liquidation preference. Before the Series A offering, there were 30 million shares of common stock outstanding. One year later, Square needs to raise more capital, so they now plan to issue 5 million shares of Series B preferred stock, which is convertible into common 11 and has a nonparticipating 1x nonparticipating liquidation preference and a weightedaverage ratchet. After meeting with several VC firms in the Valley, they agree on a price of $10 per share. They now have 35 million shares of common stock. [A] Complete the Series B cap table below by filling in the shaded areas: Common Series B Round Shares Issued Price After Percentage of (millions) Conversion Common Series A convertible preferred Series B convertible preferred Common shares Total shares [B] Determine the pre and postmoney valuation for Series B round. [C] If Square is acquired 1year later for $200 million, what is the value of each shareholder' s (A, B, and common) proceeds after the sale? [D] Based on Square's business model, explain one reason why the VC investors may believe it could become a unicorn