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Answer the following two question. Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year

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Answer the following two question. Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a $6M Series B financing from Talltree for 3M shares at $2 per share. The founders and the stock pool have claims on 3M shares of common stock. What percentage of Newco would be controlled by EBV following the Series B investment? What would be the post- money and pre-money valuations? Consider the following cases: Case 1: Series A has no antidilution protection. Choose the correct answer in the following order: % controlled by EBV; post-money: pre-money O 14.3%; $14M, $8M O 14.3%; $20M, $8M 0 14.3%: $14M. $24M O 10.0%: $14M, $8M Case II: Series A has full-ratchet antidilution protection. 0 14.3%; $18M, $12M O 30.3%: $14M, $12M 0 14.3%; $18M, $12M 30.3%; $18M, $12M Answer the following two question. Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a $6M Series B financing from Talltree for 3M shares at $2 per share. The founders and the stock pool have claims on 3M shares of common stock. What percentage of Newco would be controlled by EBV following the Series B investment? What would be the post- money and pre-money valuations? Consider the following cases: Case 1: Series A has no antidilution protection. Choose the correct answer in the following order: % controlled by EBV; post-money: pre-money O 14.3%; $14M, $8M O 14.3%; $20M, $8M 0 14.3%: $14M. $24M O 10.0%: $14M, $8M Case II: Series A has full-ratchet antidilution protection. 0 14.3%; $18M, $12M O 30.3%: $14M, $12M 0 14.3%; $18M, $12M 30.3%; $18M, $12M

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