Imagine that your VC firm made an offer to acquire equity in a start-up. Your offer is as follows (stage A): The entrepreneur owns 12M shares and you want to acquire 30% equity stake in exchange for $2.7M investment. You also include the anti-dilution ratchet (weighted average) in the agreement. Let's fast forward in time to three years from today. The start-up is struggling and the board decided to raise more funds to address the cash shortage regardless of the valuation. Another VC firm comes up with the following offer (stage B): We can invest $4.2M but we want to acquire 50% equity in the start-up. a. (6 Points) How many shares do you acquire at stage A investment? (Please round the number of shares to the closest integer number) What is the per share price at this round? b. (8 Points) If the stage B offer is accepted the new investor agrees on the number of shares (without the anti-dilution ratchet shares) rather than 50% equity ownership in the start-up, how many additional shares will be issued to you (i.e., stage A investor)? c. (6 Points) Please calculate the percentage ownership of each equity investor after the anti-dilution ratchet shares are issued.