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"Lessons in Humility and Decency Inc." started when an infamous billionaire gave his kids a "small gift" of $6.2 million to go out and create some dubious start-up firm, having to do something with fake steaks. The following year, Daddy's friends invest $1.3 million at a pre- money valuation of $13.7 million. A) What share of the firm do the kids own now? % B) What is their return on their investment so far? Things are looking great. Deutsche Bank acquires a 10.00% stake in the business for a post-money valuation of $26.0 million. But soon after, the business is starting to sputter. Fake steaks are not selling. Deutsche Bank is unwilling to take a write-down and instead convinces 3 more investment banks to join Deutsche in a so-called down-round. They value the business at $16.0 million pre-money and invest a total of $4 million in 4 equal shares. C) What share of the firm is now owned by ... the kids? % Daddy's friends? % Deutsche Bank? % ... The other 3 investment banks combined? % D) Compute the total percentage return on their total dollar investment for .. the kids? % ER Daddy's friends? % Deutsche Bank? "Lessons in Humility and Decency Inc." started when an infamous billionaire gave his kids a "small gift" of $6.2 million to go out and create some dubious start-up firm, having to do something with fake steaks. The following year, Daddy's friends invest $1.3 million at a pre- money valuation of $13.7 million. A) What share of the firm do the kids own now? % B) What is their return on their investment so far? Things are looking great. Deutsche Bank acquires a 10.00% stake in the business for a post-money valuation of $26.0 million. But soon after, the business is starting to sputter. Fake steaks are not selling. Deutsche Bank is unwilling to take a write-down and instead convinces 3 more investment banks to join Deutsche in a so-called down-round. They value the business at $16.0 million pre-money and invest a total of $4 million in 4 equal shares. C) What share of the firm is now owned by ... the kids? % Daddy's friends? % Deutsche Bank? % ... The other 3 investment banks combined? % D) Compute the total percentage return on their total dollar investment for .. the kids? % ER Daddy's friends? % Deutsche Bank