The founders of a startup award themselves 1,000,000 shares of Series A common stock. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The founders of a startup award themselves 1,000,000 shares of Series A common stock. The company then undergoes two rounds of external funding. The table below shows the number of shares issued and the price per share during each round. The table also shows the liquidation preference for the shareholders in each round. Series B and Series C both have seniority over common shareholders, but neither has seniority over the other (i.e. Series C is pari passu). Series B and Series C shareholders have the right to convert their shares to common shares at any point. Price Per Share Liquidation Pref. Round Number of Shares Series B Series C 250,000 300,000 O 700,642 The company is sold for 1,950,000. Determine the amount of money received by the Series B shareholders. 625,573 2.50 3.25 O 738,176 O 663,107 775,710 1.4x 1.9x The founders of a startup award themselves 1,000,000 shares of Series A common stock. The company then undergoes two rounds of external funding. The table below shows the number of shares issued and the price per share during each round. The table also shows the liquidation preference for the shareholders in each round. Series B and Series C both have seniority over common shareholders, but neither has seniority over the other (i.e. Series C is pari passu). Series B and Series C shareholders have the right to convert their shares to common shares at any point. Price Per Share Liquidation Pref. Round Number of Shares Series B Series C 250,000 300,000 O 700,642 The company is sold for 1,950,000. Determine the amount of money received by the Series B shareholders. 625,573 2.50 3.25 O 738,176 O 663,107 775,710 1.4x 1.9x
Expert Answer:
Answer rating: 100% (QA)
Answer Option B 625573 Explanation Value of shares of Series ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
What advice would you give the founders of a new company who want to avoid unionization efforts among their workforce as the company grows?
-
If you were advising the founders of a new Internet-based business, what would you tell them about the benefits of using a conduit organizational form to operate their business?
-
Gray Company lists the following shareholders equity items on its December 31, 2015, balance sheet: Gray Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2...
-
What is the output after executing the following Java statements? for (int i-2; i <3; i++) for (int j-2; j <4; j++) System.out.print ((i+j) + " ");
-
As part of the year-end audit and using the analytical-procedure approach similar to last year's audit (average loan volume multiplied by weighted-average interest rate), determine if Northwest...
-
Find the standard deviation (rounded to the nearest unit) for the data indicated in Problems 47-52. Data from Problem 36 Test Score 90 80 70 60 50 40 Frequency 1 6 10 4 3 1
-
A six-cylinder, 4-stroke SI engine delivers \(400 \mathrm{~kW}\) at \(2200 \mathrm{rpm}\). Determine the bore and stroke from the following data : Compression ratio \(=7.6 ;\) stroke to bore ratio...
-
As part of a forensic accounting engagement, you are asked to determine what factors influence the pricing of homes in the local community. Review the data in the following table that has been...
-
What do we know about the Galaxies over time according to https://webb.nasa.gov/content/science/galaxies.html What are some of the unknowns How might the JWT shed light on the galaxies over time?...
-
Peachtree Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Peachtree Delivery Service during February: 1. Received cash from owner as...
-
Jody purchases a new car from a dealer for $31,000, she puts $2,500 down. The dealer agrees to give her $12,500 for trading in her current vehicle. The registration and title fee is $375. In Judy's...
-
Financial information is presented below: Operating expenses $52920 Sales returns and allowances 15120 Sales discounts 3780 Sales revenue 207900 Cost of goods sold 115290 The profit margin would be
-
A slender bar of mass m is pivoted at point O and supported at the ends by two springs as shown in Figure. A 2 kg fan with rotating force F(t) = 200 sin 10 t, is mounted on point R. Given m = 12 kg,...
-
For both the domestic market and the World_ex Domestic market return series data below, calculate the following historical moments using the full sample period provided: a) Average arithmetic annual...
-
How do i find the slope of a tangent The Slope of the f(x) = 2x + 3 tangent line a x = 5
-
Walther has a roadside produce stand where he sells oats, peas, beans, and barley. He buys these products at per-pound wholesale prices of, respectively, $1.05, $3.17, $1.99, and $0.95; he sells them...
-
Which statement is TRUE for not-for-profit organizations? Not-for-profit corporations are subject to double taxation Not-for-profits are generally exempt from all levels of property, income, and...
-
Planning: Creating an Audience Profile; Collaboration: Team Projects. Compare the Facebook pages of three companies in the same industry. Analyze the content on all available tabs. What can you...
-
Ethical Consideration. How does societys concern for the environment affect a companys facility location and layout?
-
Why would companies include vesting criteria in their 401(k) retirement plans?
-
Chapter 7 Discuss several styles of leadership, including autocratic, democratic, and laissez-faire. How do each of these styles relate to Theory X and Theory Y assumptions about workers?
-
R-12 refrigerant belongs to which group of refrigerants? (a) halo-carbon (b) azeotropes (c) inorganic (d) hydro-carbons
-
Frosting of evaporator tubes results in (a) increased heat transfer rate (b) decreased heat transfer rate (c) increased compressor pressure (d) decreased compressor pressure
-
The bank of tube at the back of a domestic refrigerator of vapour compression type is (a) evaporator (b) condenser (c) capillary (d) electric wire
Study smarter with the SolutionInn App