Benedicta has proposed that her shares pay non-cumulative cash dividends of 10% of the original cost per share ($8.1683). At conversion, accrued dividends convert into common stock at original cost per share. Deal is priced on one round of financing and as if non-dividend bearing stock with a 50% required return were used.

Value is $100M and Benedicta owns 38% in 5 years based off a $5M investment today (50% rate of return).

What effect does using the security proposal of Benedicta have on her rate of return? How much of the company does she own?