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A.) A company took $4 million from the Series A investors with a $6 million pre-money valuation, or $10 million post-money valuation. Thus, the common

A.) A company took $4 million from the Series A investors with a $6 million pre-money valuation, or $10 million post-money valuation. Thus, the common hold 60% and the preferred hold 40% of the ownership. Calculate the common versus preferred amount of proceeds for sales of $4 million, $10 million, $30 million and $100 million according to the following four cases: a. The Series A stock has a 1x liquidation preference and no participation b. The Series A stock has a 2x liquidation preference and no participation c. The Series A stock has a 1x liquidation preference and is fully participating with no cap d. The Series A stock has a 1x liquidation preference and is fully participating up to a 3x cap

B.) Change the assumptions. Assume a $50 million Series A investment whereby the investors own 40% and the common own 60% and theres a $200 million sale. How are the proceeds split between the common and preferred using the scenarios used in #1 above?

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