A VC and an entrepreneur discuss two possible financing alternatives for a 3 million investment by the VC: A: In exchange for the investment, the VC receives 50% of the common equity. B: In exchange for the investment, the VC receives a convertible preferred with a 6 million liquidation preference that can be converted into 30% of the firm's common equity. Assume that, in a Modigliani-Miller world, both deal alternatives have the same value for the VC. Carefully answer the following questions: a) What is the implied post-money valuation of the company according to financing alternative (A)? b) Draw a diagram that shows the two financing scenarios from the point of view of the entrepreneur (who owns the common stock). Make sure that you label all relevant items in that diagram. c) In the negotiation, the entrepreneur shows a strong preference for financing alternative (A). What does this tell the VC about the entrepreneur? Briefly explain. A VC and an entrepreneur discuss two possible financing alternatives for a 3 million investment by the VC: A: In exchange for the investment, the VC receives 50% of the common equity. B: In exchange for the investment, the VC receives a convertible preferred with a 6 million liquidation preference that can be converted into 30% of the firm's common equity. Assume that, in a Modigliani-Miller world, both deal alternatives have the same value for the VC. Carefully answer the following questions: a) What is the implied post-money valuation of the company according to financing alternative (A)? b) Draw a diagram that shows the two financing scenarios from the point of view of the entrepreneur (who owns the common stock). Make sure that you label all relevant items in that diagram. c) In the negotiation, the entrepreneur shows a strong preference for financing alternative (A). What does this tell the VC about the entrepreneur? Briefly explain