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i will vote thumbs up if right! Thank you! (answer the next 3 questions with the following information.) A fictitious VC frrm, EBV, that is

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(answer the next 3 questions with the following information.) A fictitious VC frrm, EBV, that is considering a series A investment in a start-up company named Newco. The terms specify that EBV invests \$5 million for 5M shares into Newco, which currently has 10M shares allotted to employees and founders. Security structure is as follows: First pay [one] times the Original Purchase Price on each share of Series A Preferred. Thereafter, the Series A Preferred participates with the Common Stock pro rata on an as-converted basis. The liquidation return is capped at four times OPP. EBV has committed capital of $100M with 2% management fee. GP\% is 10%. If the exit value is $72, how much is the distribution to the VC? $32M $27.3 $24M $10.7M What is the exit equation? V(2/3)C(5)(1/3)C(50)+(1/3)C(60)C(12)C(18)+(1/2)C(24)(1/6)C(36)VC(12)C(18)+(1/2)C(24)(1/6)C(36)VC(12)+(1/3)C(36)] Question 9 1 pts What is the breakeven valuation? Use vcvTools to answer the question. $33.6M $22.7M $15.63M $5.6M If LP valuation is lower than LP cost, given total valuation, what can VC do to breakeven or better in the design of the security structure? Note: investment \$ and number of shares are nonnegotiable. Change the security type with excess liquation preference. Change the security type with higher conversion cap. Change the security type with higher QPO. All of the above

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