Common Stock:	Shares		%
Founders: Sierra & Derrick	4,000,000		40%
Reserved for Stock Option Plan	2,000,000		20%
Series A Preferred Stock:
CMU Ventures II, LP	4,000,000		40%
Total Capital Stock	10,000,000		100%

o Founders (Sierra & Darrick) purchased their shares of common stock for $0.001 per share (for a total of $4,000).

o A venture capital fund managed by Carson and Shanell of CMU Ventures (CMUV) recently paid $2.00 for each share of its Series A preferred stock (for a total of $8,000,000).

o Immediately after the Series A financing, CMUV has the right to convert each share of its Series A preferred stock into one share of common stock.

o The Series A preferred stock has full ratchet price-based anti-dilution protection.

o The Series A preferred stock has a ONE times liquidation preference right (i.e., LP = 1X) AND the Series A preferred stock is full participating.

o The above capitalization table is accurate and complete (i.e., immediately after the Series A financing: (a) there are no other outstanding shares of stock or options to purchase stock; and (b) DIY Chef has not yet issued any shares reserved for its Stock Option Plan).

Assume that: (a) a large Delaware corporation, Big Public Co., is going to buy all of DIY Chef's assets for $28,000,000; (b) immediately after the sale, no shares of DIY Chef's common stock will be subject to any vesting; (c) immediately after the sale, DIY Chef has no debts or other liabilities; and, (d) DIY Chef is going to distribute all of the sale proceeds to its stockholders.

As a result of the preferred stock liqudation preference and participation rights, in total, what % of the sales proceeds did CMUV receive from the distribution?

A. more than 50%

B. 40%

C. 50%

D. 100%