Question: THE ANSWER IS D, BUT NOT SURE HOW TO SOLVE. PLEASE HELP, THANKS!! Assume a venture with 4,000,000 common shares outstanding. One year later a

THE ANSWER IS D, BUT NOT SURE HOW TO SOLVE. PLEASE HELP,THE ANSWER IS D, BUT NOT SURE HOW TO SOLVE. PLEASE HELP, THANKS!!

Assume a venture with 4,000,000 common shares outstanding. One year later a Series A investor invests $2,500,000 in the venture with a post-money valuation of $11,300,000. Another year later a Series B investor invests $4,500,000 at $1.12 per share. Assuming Series A investor has a Full Ratchet Anti-Dilution provision. What amount of additional shares are issued to Series A investor in Series B round? a. 2,232,143 b. 4,017,857 c. 1,136,364 d. 1,095,779

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!