Question: Really confused need help please (Answer the next 7 questions with the following information.) A fictitious VC firm, EBV, that is considering a series A


Really confused need help please
(Answer the next 7 questions with the following information.) A fictitious VC firm, EBV, that is considering a series A investment in a start-up company named Newco. The terms specify that EBV invests $5 million into Newco for 5M shares, which currently has 10M shares allotted to employees and founders. There are five structures that defines the wealth to VCs ($VC in vertical axis) against the exit value of portfolio firm ($W in horizontal axis). Choose the correct structure listed in the following that matches the diagram given in the question. Identify the security structure of the following diagram. Commonn Slope = 1/3 $W O 5M shares of common. RP + 5M shares of common. O PCP with participation as-if 5M shares of common, QPO at $5 per share. O PCPC with participation as-if 5M shares of common, with liquidation return capped at four times OPP, QPO at $5 per share. RP ($4M APP) + 5M shares of CP ($1M APP)
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