1) The following partial valuation equation can be calculated by applying call option valuation formula: partial valuation (Series A under Structure 2) = C (12) - C (15) + 1/2 * C (24) - 1/6 * C (46). Which of the following is not the input to the call option formula?

Total valuation

Exit date

Volatility of total valuation

Exit value at IPO

2)Suppose the exit $W is $96M. Which structure would give the highest wealth to VCs?

RP + 5M shares of common;

PCP with participation as-if 5M shares of common, QPO at $5 per share;

PCPC with participation as-if 5M shares of common, with liquidation return capped at four times OPP, QPO at $5 per share;

RP ($4M APP) + 5M shares of CP ($1M APP).

3.What is the level of proceeds and exit value where the redemption value is capped (cap point) in the following security structure? PCPC with participation as-if 5M shares of common, with liquidation return capped at four times OPP, QPO at $5 per share;

$10M; $40M

$10M; $60M

$20M; $50M