Question: PLEASE ANSWER ALL ONLY I WILL UPVOTE Answer the next four (4) questions using the following information. Assume that EBV (Series A) invested $5M for

PLEASE ANSWER ALL ONLY I WILL UPVOTE  PLEASE ANSWER ALL ONLY I WILL UPVOTE Answer the next four
(4) questions using the following information. Assume that EBV (Series A) invested
$5M for 6M shares in Newco, and it is now one year
later. Talltree is considering a $10M Series B investment in Newco, Talltree

Answer the next four (4) questions using the following information. Assume that EBV (Series A) invested $5M for 6M shares in Newco, and it is now one year later. Talltree is considering a $10M Series B investment in Newco, Talltree proposes to structure the investment as 8M shares of convertible preferred stock. The employees of Newco have claims on 10M shares of common stock, and the previous venture investors (EBV) hold 6M shares of Series A convertible preferred. Thus, following the Series B investment, Newco will have 10M common shares outstanding, and would have 24M shares outstanding on conversion of the CP. Talltree estimates a 40 percent probability for a successful exit, with an expected exit time in 4 years and an exit valuation of $500M. The $250M Talltree fund has annual fees of 2 percent for each of its 10 years of life and earns 20 percent carried interest on all profits. Expected GVM=2.5. Apply standard assumptions listed in the textbook and lecture notes for additional data and information required for the valuation. How much is the VC cost? $5M $10M $15M $20M How much is the partial valuation? $15.5M $27.3M $81.9M $136.6M Question 28 1 pts How much is the LP cost? $10M $12.5M $20.2M $36.6M How much is the LP valuation? $10M $12.5M $24.59M $36.6M

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