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2. EBV is considering a $5M Series A investment in Newco. Given that the founders and employees currently have claims on 10M shares of common

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2. EBV is considering a $5M Series A investment in Newco. Given that the founders and employees currently have claims on 10M shares of common stock, EBV demands the issue of 5M participating convertible preferred shares. What is the payoff to EBV in each of the following exit scenarios? a. Liquidation at $3M b. Trade sale at $8M c. IPO at $32M 2. EBV is considering a $5M Series A investment in Newco. Given that the founders and employees currently have claims on 10M shares of common stock, EBV demands the issue of 5M participating convertible preferred shares. What is the payoff to EBV in each of the following exit scenarios? a. Liquidation at $3M b. Trade sale at $8M c. IPO at $32M

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