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Example of liquidity preference / participation Suppose that in addition to common shares ( owned by founders ) your firm raised: If you sell the

Example of liquidity preference

/

participation

Suppose that in addition to common shares

(

owned by

founders

)

your firm raised:

If you sell the firm now, what is the minimum sale price

such that common shareholders would receive anything?

And what is the minimum sale price such that all

investors would convert their shares to common stock?

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