Question 2 please

ANALYSIS QUESTIONS: (Total: 10 points) (1.) Evaluating Terrapin as an Investment Target (4 Points) Evaluate Terrapin, its current business (substance abuse testing), and its progress to date? (2.) Cap table. (3 Points) Say we offer to invest $10 million in a Series A for a 20% equity stake in Terrapin, which will be used to finance the entry into the pain care market. The terms of the investment include creation of a 10% option pool. She has also offered to buy $5 million of Doctoroff's shares and all the Angel shares, in both cases at a 30% discount to her Series A valuation. Using the data in case Exhibit 8, please calculate the full cap table that would result if this transaction were completed. (3.): Pain Care. (3 Points) Should Terrapin enter the pain testing market? Why or why not? To answer this question, you may assume that the deal in Question 2 is available to the entrepreneurs to enter the market. Exhibit 8 Terrapin Cap Table A. Doctoroff J. Banks P. Shaughnessy L. Gagliardi Other Employees Angel Investors Total Common Shares 500,000 250,000 50,000 25,000 75,000 100,000 1,000,000T Source: Company. ANALYSIS QUESTIONS: (Total: 10 points) (1.) Evaluating Terrapin as an Investment Target (4 Points) Evaluate Terrapin, its current business (substance abuse testing), and its progress to date? (2.) Cap table. (3 Points) Say we offer to invest $10 million in a Series A for a 20% equity stake in Terrapin, which will be used to finance the entry into the pain care market. The terms of the investment include creation of a 10% option pool. She has also offered to buy $5 million of Doctoroff's shares and all the Angel shares, in both cases at a 30% discount to her Series A valuation. Using the data in case Exhibit 8, please calculate the full cap table that would result if this transaction were completed. (3.): Pain Care. (3 Points) Should Terrapin enter the pain testing market? Why or why not? To answer this question, you may assume that the deal in Question 2 is available to the entrepreneurs to enter the market. Exhibit 8 Terrapin Cap Table A. Doctoroff J. Banks P. Shaughnessy L. Gagliardi Other Employees Angel Investors Total Common Shares 500,000 250,000 50,000 25,000 75,000 100,000 1,000,000T Source: Company