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EBV is considering a $ 5 M Series A investment in Newco. The founders and employees of Newco have claims on 1 0 M shares
EBV is considering a $ Series A investment in Newco.
The founders and employees of Newco have claims on shares of common including the stock pool
EBV is considering PCP with participation as if shares of common.
This structure has mandatory conversion upon a QPO, where a QPO is any offering of at least $ per common share and $ of proceeds.
For the purpose of solving this problem, assume that any exit above $ per share will qualify as a QPO ie acquisitions for at least $ per common share would also be considered to be QPOs
At the QPO threshold, what is the total value immediately after conversion?
$
$
$
$
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