3. DropDrive corporation anticipates that it will need $18,000,000 in venture capital to achieve a terminal value of $320,000,000 in 5 years. A. Assuming it is a seed-stage venture with no existing investors, what annual return is in their expectation? B. Suppose that the founder wants to have a venture investor inject $18,000,000 in three rounds of $6,000,000 at year 0, 1, and 2 with the exit value of $32,000,000 at year 5. If the founder anticipates returns of 72%, 54%, and 36% for wound 1, 2, and 3, what percentage of ownership is sold during the first, the second, and the third round? What is the founders' year-five ownership percentage? C. If the founder will have 10,000 shares, how many shares will be issued in round 1, 2, and 3? D. What is the second round share price derived from parts B and C? E. How does the answer to part D change if 10% of the year-five fim is set aside for incentive compensation? How many total shares are outstanding by year 5? 3. DropDrive corporation anticipates that it will need $18,000,000 in venture capital to achieve a terminal value of $320,000,000 in 5 years. A. Assuming it is a seed-stage venture with no existing investors, what annual return is in their expectation? B. Suppose that the founder wants to have a venture investor inject $18,000,000 in three rounds of $6,000,000 at year 0, 1, and 2 with the exit value of $32,000,000 at year 5. If the founder anticipates returns of 72%, 54%, and 36% for wound 1, 2, and 3, what percentage of ownership is sold during the first, the second, and the third round? What is the founders' year-five ownership percentage? C. If the founder will have 10,000 shares, how many shares will be issued in round 1, 2, and 3? D. What is the second round share price derived from parts B and C? E. How does the answer to part D change if 10% of the year-five fim is set aside for incentive compensation? How many total shares are outstanding by year 5