Question
If a company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic liquidation preference: a. How much will common shareholders
If a company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic liquidation preference:
a. How much will common shareholders receive if the company sells?
b. How much will common shareholders receive if the company sells for $5m?
c. How much would the company have to sell for in order for common shareholders to receive a total of $5m?
d. How much would the company have to sell for in order for common shareholders to receive a total of $50m?
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a If the company sells the investors with the liquidation preference will receive their investment a...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
