Question: Suppose a startup decides to raise $ 1 , 7 5 0 , 0 0 0 in exchange for 3 0 % ownership in the

Suppose a startup decides to raise $1,750,000 in exchange for 30% ownership in the
form of Participating Preferred Securities (with a 1 Liquidation Preference and a 5%
Cumulative Dividend). Currently, the startup has 140,000,000 shares in total
outstanding. What is the number of shares issued upon raising $1,750,000 and
creating a new equity pool?
Suppose a startup decides to raise $1,750,000 in exchange for 30%

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