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19. Talltree is considering a $12M Series B investment in Newco with the structure of SM shares of common plus RP with S1OM APP and

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19. Talltree is considering a $12M Series B investment in Newco with the structure of SM shares of common plus RP with S1OM APP and a 2x liquidation preference. The flounder and employees have claims on TOM shares of common, and the Series A investors, EBV, have 10M shares of CP with S6M APP Series B has a liquidation preference to Series A. Both Talltree and EBV receive carried interest of 20 percent and charge management fees of 2 percent per year for all 10 years. Compute the partial valuation equation for the Series A investors (EBV). Compute the partial valuation equation for the Series A investors (EBV) under this structure. A. partial valuation (Series A under Structure 1) = C (26) + 2/5 C (35) B. partial valuation (Series A under Structure 1)-C (20) - (26) + 2/5 C. partial valuation (Series A under Structure 1) = C(20) - C (28) + 3/5 D. partial valuation (Series A under Structure 1)=C(10)-C (26) + 2/ 5 C (35) C (35) C (30) (answer the next 4 questions) EBV made a $6M Series A investment in Newco. EBV's investment is structured as 10M shares of convertible preferred stock (CP). The founder and the employees of Newco have claims on 10M shares of common stock. The $100M EBV fund has annual fees of 2 percent for each of earns 20 percent carried interest on all profits with committed capital as base. Expected GVM is 2.5. As the value of Newco grows, Talltree is considering S12M Series B investment in Newco. Talltree proposes to structure the investment as 10M shares of convertible preferred stock (CP). The $250M Talltree fund has annual fees of 2 percent for each of its 10 years of life and earns 20 percent carried interest on all profits with committed capital as base. Expected GVM is 2.5. 19. Talltree is considering a $12M Series B investment in Newco with the structure of SM shares of common plus RP with S1OM APP and a 2x liquidation preference. The flounder and employees have claims on TOM shares of common, and the Series A investors, EBV, have 10M shares of CP with S6M APP Series B has a liquidation preference to Series A. Both Talltree and EBV receive carried interest of 20 percent and charge management fees of 2 percent per year for all 10 years. Compute the partial valuation equation for the Series A investors (EBV). Compute the partial valuation equation for the Series A investors (EBV) under this structure. A. partial valuation (Series A under Structure 1) = C (26) + 2/5 C (35) B. partial valuation (Series A under Structure 1)-C (20) - (26) + 2/5 C. partial valuation (Series A under Structure 1) = C(20) - C (28) + 3/5 D. partial valuation (Series A under Structure 1)=C(10)-C (26) + 2/ 5 C (35) C (35) C (30) (answer the next 4 questions) EBV made a $6M Series A investment in Newco. EBV's investment is structured as 10M shares of convertible preferred stock (CP). The founder and the employees of Newco have claims on 10M shares of common stock. The $100M EBV fund has annual fees of 2 percent for each of earns 20 percent carried interest on all profits with committed capital as base. Expected GVM is 2.5. As the value of Newco grows, Talltree is considering S12M Series B investment in Newco. Talltree proposes to structure the investment as 10M shares of convertible preferred stock (CP). The $250M Talltree fund has annual fees of 2 percent for each of its 10 years of life and earns 20 percent carried interest on all profits with committed capital as base. Expected GVM is 2.5

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