Assume VC1 holds 2 million shares of participating preferred stock in Company A, which were purchased for
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Assume VC1 holds 2 million shares of participating preferred stock in Company A, which were purchased for $10 million. The founders are the only other shareholders, and they own 5 million shares of common equity. The liquidation preference is 1X and there is a 5% accruing and compounding dividend. The company is sold for $50 million after 5 years.
VC1 will receive how much ($)?
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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