Two investors $-$ Joe Common and Kevin Smart invest $ $5$ M each into TinderCat startup. However, Joe buys common shares, while Kevin buys convertible preferred shares with $5\%$ annual dividend accrued to the time of exit. Premoney valuation is $ $40$ M and founders and stock$-$option pool was $4$ M common shares.

Common shares Investment $($$ $000)$ $$5,000$

Convertible Preferred Investment $$5,000$

Time to exit $($years$)2$

Founders Common shares $(000)4,000$

Dividend rate $5\%$

Pre$-$Money Valuation $($$ $000)$ $$40,000$

find this

Price per share

Post$-$money valuation

Joe's number of shares $(000)$

Joe's ownership $(\%)$

Kevin's number of shares $(000)$

Kevin's ownership $(\%)$

Total Dividends

Preferred Terms $($$ $000)$

Conversion threshold $($$$),$ preferred