Question
An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to raise
An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to raise new capital in a distressed setting at $1.50 / share. Now, suppose there is a full ratchet for the old investor. Find the resulting values of each partys ownership and the respective ownership %.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
