Create a cap table that answers the following questions please: A company needs $$3$ million to expand and expects yearly revenues of $$25$ million by year $5,$ growing at $5\%$ per year thereafter. The industry exit multiple is $5$X$.$

a$.$investors expect that the company will exit in $7$ years. Use the VC method to determine the equity stake needed by Series A investors to achieve a $40\%$ target ROR.

b$.$ The Series A investors expect two more rounds of financing before an exit event in $7$ years. They predict $20\%$ of equity will be sold in the Series B round and $10\%$ will be sold in the Series C round. With the expected dilution, how much equity do the Series A investors need to own today $($assuming no follow$-$on investment$)$ to get achieve the $40\%$ target rate of return?