Imagine that you have just been hired as the Chief Financial Officer of a hot startup company. The founder has a magnetic personality and has raised a lot of money and hired many people during the brief 30 months since founding the company, which has just been valued at $50mm by an independent auditor. However, he is getting divorced and his soon-to-be-ex-wife wants him to buy out her share of the company. He asks you to calculate how much money it will cost to buy out her percentage, and you realize no one has ever put together a cap table. Create a fully-diluted cap table based on the following information and calculate what percentage the wife owns and therefore how much money it will take to buy her out:

Founder started the company by issuing himself 500,000 shares, his wife 500,000 shares, and each of their four children 50,000 shares. Shortly after that he raised seed capital by issuing 300,000 shares to an angel investor. As he started to hire employees, he set up an option pool with 200,000 shares. After a year he did a 2/1 stock split; following that, he increased the pool by another 200,000 post-split shares. A total 450,000 of the total pool options have been awarded to employees so far, of which 30% are vested but none exercised. He has also borrowed $700,000 in convertible debt from angel investors that converts at a split-adjusted ratio 80 cents per share, and issued warrants to his asset-based lenders that give them the right to purchase 150,000 shares.