If a company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic
Fantastic news! We've Found the answer you've been seeking!
Question:
If a company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic liquidation preference:
a. How much will common shareholders receive if the company sells?
b. How much will common shareholders receive if the company sells for $5m?
c. How much would the company have to sell for in order for common shareholders to receive a total of $5m?
d. How much would the company have to sell for in order for common shareholders to receive a total of $50m?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date: