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Please help I will upvote if correct (answer the next 3 questions with the following information.) A fictitious VC firm, EBV, that is considering a
Please help I will upvote if correct (answer the next 3 questions with the following information.) A fictitious VC firm, 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)] What is the breakeven valuation? Use vcvTools to answer the question. $33.6M $22.7M $15.63M $5.6M
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