1. A venture capital fund owns one million shares of participating preferred stock in Company Z purchased for $10 million. Each share of participating preferred stock is convertible into one share of common stock. The founders are the only other shareholders of Company Z and they own a total of one million shares of common stock. The venture capital funds shares have a 1X liquidation preference and carry a 5% annual dividend that is payable upon a liquidation or sale of the company. The company is sold for $20 million 5 years after the venture capital funds investment. How much will the venture capital fund receive from the sale?