Question: Question 26 2 pts Use the following capitalization table, Suppose Series A investor invested $6M and holds PCPC. The following is the description of the

 Question 26 2 pts Use the following capitalization table, Suppose Series

Question 26 2 pts Use the following capitalization table, Suppose Series A investor invested $6M and holds PCPC. The following is the description of the PCPC: "First pay one time the Original Purchase Price on each share of Series A Preferred. Thereafter, Series A Preferred participates with Common Stock pro rata on an as-converted basis until the holders of Series A Preferred receive an aggregate of 5 times the Original Purchase Price." 1). Show coordinates of all inflection points starting from (0,0) and slope in the exit diagram (If available, show exit diagram.) 2). The company is acquired by its competitor and Series A investor exited from the portfolio company with the valuation of portfolio company at $96M. How much does Series A investor claim? Pre Series A Post Series A Security # Shares 96 # Shares % Common-Founders 15,000,000 83.3% 15,000,000 62.5% Common-Employee Stock Pool 3,000,000 16.796 3,000,000 12.596 Issued 600,000 3.3% 600,000 2.5% Unissued 2,400,000 13.396 2,400,000 10.096 Series A Preferred 0 0.0% 6,000,000 25.096 Total 18,000,000 100.0% 24,000,000 100.0% Question 26 2 pts Use the following capitalization table, Suppose Series A investor invested $6M and holds PCPC. The following is the description of the PCPC: "First pay one time the Original Purchase Price on each share of Series A Preferred. Thereafter, Series A Preferred participates with Common Stock pro rata on an as-converted basis until the holders of Series A Preferred receive an aggregate of 5 times the Original Purchase Price." 1). Show coordinates of all inflection points starting from (0,0) and slope in the exit diagram (If available, show exit diagram.) 2). The company is acquired by its competitor and Series A investor exited from the portfolio company with the valuation of portfolio company at $96M. How much does Series A investor claim? Pre Series A Post Series A Security # Shares 96 # Shares % Common-Founders 15,000,000 83.3% 15,000,000 62.5% Common-Employee Stock Pool 3,000,000 16.796 3,000,000 12.596 Issued 600,000 3.3% 600,000 2.5% Unissued 2,400,000 13.396 2,400,000 10.096 Series A Preferred 0 0.0% 6,000,000 25.096 Total 18,000,000 100.0% 24,000,000 100.0%

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