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Ahmed Amin holds 1 million shares of his company GeoTech. His company recently received funding from a venture capital firm. The VC firm acquired 2.5
Ahmed Amin holds 1 million shares of his company GeoTech. His company recently received funding from a venture capital firm. The VC firm acquired 2.5 million preferred shares in GeoTech with a 1.5 times participating liquidation preference for $1.9 million. The annual accrued dividend rate on the preferred shares is 6%. At the end of three years, how much will the VC firm receive if GeoTech is acquired for $20 million.
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