Suppose you invested $50,000 in a startup with a 10% convertible note. After one year, the startup receives a $500,000 investment from a different investor (at a $2million postmoney valuation). Which of the following statements is true?

	A.	After conversion, you will own approximately 2.75 percent of the company
	B.	After conversion, you will have 50,000 shares of the company and $5,000 in cash
	C.	Before conversion, you own approximately 2.5 percent of the company
	D.	All of the above are true
	E.	None of the above are true

Answer rating: 100% (QA)

B After conversion you will have 50000 shares of the company and 5000 in cas... View the full answer