1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 95,000 shares have been set aside in an option pool for future hires.

Stakeholder Common Shares Options. Total. Fully Diluted

Oprah Winfrey 300,000. 300,000 23.35%

Sara Blakely 700,000 700,000 54.47%

Bill Gates 190,000 190,000 14.79%

Unissued Options 95,000 95,000 7.39%

Total 1,190,000 95,000 1,285,000. 100%

The company also has two convertible notes with conversion caps (but no conversion discounts):

Convertible Debt Holder Conversion Cap. Outstanding Balance

Shakira Angel 2,100,000 150,000

Beyonce Angel 1,800,000 200,000

The company now seeks to raise its Seed Round. The founders are seeking $850,000 of additional capital at a pre-money valuation of $5,300,000 and Tom Hanks Capital agrees to those terms. They will also convert the debt from Shakira Angel and Beyonc Angel into the seed round as part of the transaction.

Fill in the capitalization table below after the transaction has been completed. Put the correct value next to each Letter below the table. (16 points).

Shareholder Common Shares Seed Preferred Shares Options. Total. Fully Diluted

Oprah Winfrey 300,000 300,000 j.

Sara Blakely 700,000 700,000 k.

Bill Gates 190,000 190,000 l.

Shakira Angel a. d. m.

Beyonce Angel. b. e. n.

Tom Hanks Capital c. f. o.

Unissued Options 95,000 95,000 p.

Total. g. h. 95,000 i. 100.00%

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

n.

o.

p.