Assume a company had an A-round in which it sold 10 million shares of convertible preferred stock at $1.00 per share. Prior to the financing, Founders and Management owned 15 million shares of common stock. The company needs to raise an additional $5 million in a Series B round and learns that the investors insist on a pre-money valuation of $15 million. Your assignment is to figure out the new price per share of Series B convertible preferred stock under two scenarios: 1. There is no antidilution for prior investors (i.e., there is no price adjustment for prior investors). Hint: Series B Pre-Money-Value = Series B Price Per Share * Shares Outstanding Before Series B 2. There is full ratchet antidilution for prior investors (i.e., old investors are issued new shares for free such that their effective price equals the new price being paid by new investors). Hint: Shares Outstanding Before Series B = Founders Shares + Series A Shares after antidilution Under each scenario, also determine what share of the common stock equivalents outstanding is owned after Series B by Founders and Management, the Series A, and the Series B investors. Assume a company had an A-round in which it sold 10 million shares of convertible preferred stock at $1.00 per share. Prior to the financing, Founders and Management owned 15 million shares of common stock. The company needs to raise an additional $5 million in a Series B round and learns that the investors insist on a pre-money valuation of $15 million. Your assignment is to figure out the new price per share of Series B convertible preferred stock under two scenarios: 1. There is no antidilution for prior investors (i.e., there is no price adjustment for prior investors). Hint: Series B Pre-Money-Value = Series B Price Per Share * Shares Outstanding Before Series B 2. There is full ratchet antidilution for prior investors (i.e., old investors are issued new shares for free such that their effective price equals the new price being paid by new investors). Hint: Shares Outstanding Before Series B = Founders Shares + Series A Shares after antidilution Under each scenario, also determine what share of the common stock equivalents outstanding is owned after Series B by Founders and Management, the Series A, and the Series B investors