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(Total point is 4 with 3 extra credit). Show all works to get full credits. Assume that EBV (Series A) and Talltree (Series B) invested in Newco. It is now one year later. Owl is considering a $20M Series C investment in Newco. Owl proposes to structure the investment as 12M shares of convertible preferred stock. The employees of Newco have claims on 10M shares of common stock, and the previous venture investors hold 6M shares of Series A convertible preferred (EBV) and 8M shares of Series B Convertible Preferred (Talltree). Thus, following the Series C investment, Newco will have 10M common shares outstanding and would have 36M shares outstanding on conversion of the CP. Owl estimates a 50 percent probability for a successful exit, with an expected exit time in three years, and an exit valuation of $300M. The $500M Owl fund has 2% management fees for 10 year and 25% carried interest. Expected GVM for the fund =2.5. Assume the cost of capital is 10%. Apply standard assumptions listed in the textbook and lecture notes for additional data and information required for the valuation. a. What is your investment recommendation for OWI GPs following standard VC method? How much is the GP cost and partial valuation? b. What is your investment recommendation for OwI LPs following modified VC method? How much is the LP cost and LP valuation? c. If the cost of capital is 15%, how do your answers change for a) and b)