EXHIBIT 47.9 I Principal and Selling Stockholders Source: Rosetta Stone prospectus. B. At the time of the IPO, ABS Capital owned 44% of Rosetta Stone. What was the transaction in the past that resulted in ABS Capital obtaining this ownership stake? Be specific. C. I was initially surprised at how comparatively little ownership of the company the President and CEO of Rosetta Stone owned before the firm went public. And as noted, the top executives of the company were not going to sell any of their shares in the IPO. When do the founders of a company recelve a huge return? (Hint, it has something to do with your answer to Part B and it occurs before the firm goes public. Question One (worth fifteen points) If we look at Exhibit 47.9 from the case study on Rosetta Stone we find that ABS Capital Partners owned about 7.5 million shares of Rosetta Stone before the firm went public and ABS Capital was going to sell close to 1.9 million shares in the IPO. ABS Capital is a private equity firm