Homework #$3-$ Exit preference and valuations

This assignment and is due at the start of class next Tuesday $(4/16/24).$ Where appropriate, you must show your math to receive full credit,

Question $1$: Antidilution

A startup has $10,000$ shares and Investor A buys $1,000$ of them for $$3$ M$.$ During the next round Investor $B$ purchases $5,000$ shares for $$5M.$ Assuming a fult ratchet anti$-$dilution clause, how many "bonus shares" will investor A be issued?

Question $2$: Payout table

Assume that a VC firm ihvests $$10,000,000$ for $25\%$ of a startup company. Complete the table below regarding their payout for each type of preferred share type and for each of the four exit amounts.

$\backslash$table$[[\backslash$table$[[$Share Type $\frac{?}{?}$