For problem 9.14 the problem is worked for you in the attached Excel document. Use this document and address the following questions to earn credit for this problem: 1. How much is terminal value and how was it derived? 2. What are the required returns for each investor's specific round of financing? How do they compare to each other and why are they different? 3. What is the process used to determine an investor's present value relative to their round of financing? 4. Why did the owners desire to hold back 15% for employee incentive stock plans? As a prospective investor is this a welcome provision? Why or why not? 5. In general terms, explain how the percentage of ownership, retention, percentage of ownership with retention and number of shares issued to each investor are obtained? % of Ownership Ater Round of runcing Earning Merited PFa Respective Retention Ratio Per Round Milions Yeer Return Millions Value specific Year %Ownership Round Terminal %Ownership at Round with Investor shares Financing Amount in RequiredVlu Terminal values st at fundirg Tot issued Incentive Poul sharesPriceper share Post MoneyVlue Pre-Money Velue Round 1 Round 2 Round 3 14.31 62.4 1 6 41.9 65.9% 1,923.849.11 2,923,849.11 s 16.7% 587.356.783,5-11,205.89s 13.62 $ 47,823,823.4 1s 39,823,823.41 3.12 $ 9,118,747.71 s 3,118,747.71 65.80% 54.8% 49.3% 16.7% 15.1% 63.7% 41.9% 3 $12 8.5% 9.9% 387.585.76 3.598,791.65 30.96 s 120,710,059.17 108,710,059.17 5 17 20 $ 21 R% 15% 100.00% Drienwners 34.20% 78.5% Retained for Enployeeincentive pool Number oshares outstandirg at time Total Ownership 100.00% 100.00% 100.00 1,000,000 For problem 9.14 the problem is worked for you in the attached Excel document. Use this document and address the following questions to earn credit for this problem: 1. How much is terminal value and how was it derived? 2. What are the required returns for each investor's specific round of financing? How do they compare to each other and why are they different? 3. What is the process used to determine an investor's present value relative to their round of financing? 4. Why did the owners desire to hold back 15% for employee incentive stock plans? As a prospective investor is this a welcome provision? Why or why not? 5. In general terms, explain how the percentage of ownership, retention, percentage of ownership with retention and number of shares issued to each investor are obtained? % of Ownership Ater Round of runcing Earning Merited PFa Respective Retention Ratio Per Round Milions Yeer Return Millions Value specific Year %Ownership Round Terminal %Ownership at Round with Investor shares Financing Amount in RequiredVlu Terminal values st at fundirg Tot issued Incentive Poul sharesPriceper share Post MoneyVlue Pre-Money Velue Round 1 Round 2 Round 3 14.31 62.4 1 6 41.9 65.9% 1,923.849.11 2,923,849.11 s 16.7% 587.356.783,5-11,205.89s 13.62 $ 47,823,823.4 1s 39,823,823.41 3.12 $ 9,118,747.71 s 3,118,747.71 65.80% 54.8% 49.3% 16.7% 15.1% 63.7% 41.9% 3 $12 8.5% 9.9% 387.585.76 3.598,791.65 30.96 s 120,710,059.17 108,710,059.17 5 17 20 $ 21 R% 15% 100.00% Drienwners 34.20% 78.5% Retained for Enployeeincentive pool Number oshares outstandirg at time Total Ownership 100.00% 100.00% 100.00 1,000,000