Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show equations and steps used-thanks! 11. (15pts) As the founder of a startup company that designs portable scoters, you recently received a financing offer
please show equations and steps used-thanks!
11. (15pts) As the founder of a startup company that designs portable scoters, you recently received a financing offer from Ali Ventures. The investment amount will be $5M at a premoney valuation of $15M. Investors ask for participating preferred stock with a liquidation preference of 2.0x and a dividend of 10% per year. You expect that the company could be sold in five years. A. What is the amount of the preferred terms? B. What is the cash flow to the founders if the company is sold at $50M after five years? C. What is the cash flow to the founders if the participating preferred stock has a cap of \$40M? D. Which option is better for you, with cap or without cap Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started