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A VC group invests in your company and in return the firm gives them 100,000 preferred shares. Each share will pay out $3 annually into

A VC group invests in your company and in return the firm gives them 100,000 preferred shares. Each share will pay out $3 annually into perpetuity. If the prevailing cost of preferred equity is 15%, how much did the VC group pay for the 100,000 shares assuming the price paid was "fair"?

$1.5 million

$2.5 million

$2.0 million

$1.0 million

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