Problem 3.BitBox has raised $10 million in a Series A round with $40 million post-money value and a 1.5xliquidation preference, and $25 million in a Series B round with a $75 million post-money value and a 3xliquidation preference plus seniority over Series A. What will Series A, Series B, and commonshareholders receive if BitBox is sold for[a] $85 million?[b] $100 million?[c] $200 million?[d] $300 million?

To determine what Series A, Series B, and common shareholders would receive in the event of a sale…

Answered: BitBox has raised $10 million in a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BitBox has raised $12 million in a Series A round with $37 million post-money value and a 1.5 × liquidation preference, and $25 million in a Series B round with a $75 million post-money value and a 3x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if BitBox is sold for a. $87 million? b. $102 million? c. $200 million? d. $300 million?
Disturbed Corp. needs to raise $53.5 million to fund a new project. The company will sell shares at a price of $23.00 in a general cash offer and the company's underwriters will charge a spread of 6 percent. The direct flotation costs associated with the issue are $550,000 and the indirect costs are $375,000. How many shares need to be sold? Multiple Choice 2,216,981 shares 2,209,803 shares 2,326,087 shares 2,517,345 shares 2,421716 shares
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Jasmine Flowers must raise $227 million for its future expansion. To do so, Jasmine expects to issue new common stock. Investment bankers have informed the company the flotation costs will be 5.5 percent of the total amount issued plus $556,000 in additional costs associated with the issue. Jasmine can issue its stock for $40 per share. Determine how many shares Jasmine must sell to net $227 million after flotation costs. Round your answer to the nearest whole number. shares?

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