Please provide formulas for each answer. Thank you!

Question 1 Parts A, B, and C Please remember to highlight your answers and show all work ($s in millions) You are the CEO of Itelanet, Inc. an IT start-up that has been in business for 4 years. (We are at the end of Year 4) $0.6 Prior investments (Founders and A Round) Founders (Year 0) A Round Investors (End of Year 2) Percent Ownership $2.5 at end of Year 2 45.0% at A Round Itelanet expects to have its initial product on the market at the end of year 6 and be acquired at the end of Year 10. Itelanet has just closed its B Round raising $8.5 million from Snowscape Ventures Post Money Valuation $19.5 million With the B Round in place, Itelanet's cash balance (end of Year 4) is $10.0 million Expected operating cash flows 8 Operating Cash Flow 5 ($3.3) 6 ($5.0) 7 ($7.5) ($5.5) 9 ($3.0) 10 ($2.0) Part A (1) Calculate the capitalization table (% and $s) for Founders, A, and B Rounds Include the valuation step up (%/yr) for each round in the cap table (ii) If you were a founder, how would you feel about the progress of the company to the B Round? Why? Part B (1) Calculate a financing plan for Itelanet Year 5 to Exit (use only one additional financing C Round to get to Exit) (ii) Why or why not might Itelanet expect a large step up in value for the C Round? Part C Itelanet is now in Year 6 and raising its C Round. Note: The inputs here may be different from your answers to Parts B above. Differences here do NOT mean your answers above are incorrect. Your venture capital firm is considering providing the C Round financing of to be provided in Year $25.0 7 Your VC firm wants a return of 35% per year $145.0 Exit expected at end of Year 10 with an expected valuation of: Time To Exit 3 years (1) What % ownership would you ask for in your proposal? (ii) After negotiation with Itelanet, your firm agrees to invest and receive $20.0 million 35% ownership (ii) Calculate the Cap table (% ownership only) for the C Round. Question 1 Parts A, B, and C Please remember to highlight your answers and show all work ($s in millions) You are the CEO of Itelanet, Inc. an IT start-up that has been in business for 4 years. (We are at the end of Year 4) $0.6 Prior investments (Founders and A Round) Founders (Year 0) A Round Investors (End of Year 2) Percent Ownership $2.5 at end of Year 2 45.0% at A Round Itelanet expects to have its initial product on the market at the end of year 6 and be acquired at the end of Year 10. Itelanet has just closed its B Round raising $8.5 million from Snowscape Ventures Post Money Valuation $19.5 million With the B Round in place, Itelanet's cash balance (end of Year 4) is $10.0 million Expected operating cash flows 8 Operating Cash Flow 5 ($3.3) 6 ($5.0) 7 ($7.5) ($5.5) 9 ($3.0) 10 ($2.0) Part A (1) Calculate the capitalization table (% and $s) for Founders, A, and B Rounds Include the valuation step up (%/yr) for each round in the cap table (ii) If you were a founder, how would you feel about the progress of the company to the B Round? Why? Part B (1) Calculate a financing plan for Itelanet Year 5 to Exit (use only one additional financing C Round to get to Exit) (ii) Why or why not might Itelanet expect a large step up in value for the C Round? Part C Itelanet is now in Year 6 and raising its C Round. Note: The inputs here may be different from your answers to Parts B above. Differences here do NOT mean your answers above are incorrect. Your venture capital firm is considering providing the C Round financing of to be provided in Year $25.0 7 Your VC firm wants a return of 35% per year $145.0 Exit expected at end of Year 10 with an expected valuation of: Time To Exit 3 years (1) What % ownership would you ask for in your proposal? (ii) After negotiation with Itelanet, your firm agrees to invest and receive $20.0 million 35% ownership (ii) Calculate the Cap table (% ownership only) for the C Round