Question
Company raises 40 on 60. VC takes standard participating preferred. Co. is acquired for $160 two years later. a) What is pre-money valuation? B) What
Company raises 40 on 60. VC takes standard participating preferred. Co. is acquired for $160 two years later.
a) What is pre-money valuation? B) What is post-money valuation? C) How much does VC own? D)Calculate what VC gets in dollars. What is that as proportion of company value? What is the VCs liquidation preference? What is VCs participation? E) Calculate what Common gets in dollar amount. What is the proportion of ownership after sale of company? F)Suppose VC has 3x MLP. What is the share of the VC in $ and % of firm valuation? What does Common get?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
