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Please answer both I will upvote (Answer the next 2 questions with the following information.) Consider the following three investors, and all investors hold CP:
Please answer both I will
(Answer the next 2 questions with the following information.) Consider the following three investors, and all investors hold CP: (1) Series A: \$6M APP or converts to 10M shares. (2) Series B: $12M APP or converts to 10M shares. (3) Series C: $10M APP or converts to 10M shares. In addition to these investors, the founders hold 10M shares of common stock. Suppose total valuation is $50M, and venture capital fund in all series have $100M committed capital with 2% management fee and 20% carry with the basis of committed capital, and GP\% is 10%. Assume data used in the textbook and the lecture for other relevant variables. Hint: check conversion order and the conversion conditions of each investor. Use VCV tools to get exit diagram and to answer questions. If the portfolio co is liquidated at the exit value of $36M, how much is distributed to series A investor? $8M $7M $6M $5M Following the Series C investment, which of the following statement is correct? LP valuation of Series A and C is higher than LP cost. LP valuation of all Series is higher than LP cost. LP valuation of Series B remains higher than LP cost LP valuation of all Series is lower than LP cost upvote
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