Consider the following four CP investors: (1) Series A: $5M APP (and 2X liquidation preference) or converts to 5M shares. (2) Series B: $10M APP or converts to 8M shares. (3) Series C: $10M APP or converts to 5M shares. (4) Series D: $5M APP or converts to 10M shares. In addition to these investors, the founders hold 10M shares of common.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the following four CP investors:
(1) Series A: $5M APP (and 2X liquidation preference) or converts to 5M
shares.
(2) Series B: $10M APP or converts to 8M shares.
(3) Series C: $10M APP or converts to 5M shares.
(4) Series D: $5M APP or converts to 10M shares.
In addition to these investors, the founders hold 1OM shares of common.
Find the conversion conditions for these investors.
O WD = 40, WB = 55, WA = 76, Wc = 76
WD = 76, WB = 76, WA = 76, Wc = 40
O WD = 76, WB = 55, WA = 55, Wc = 76
WD = 60, WB = 76, WA = 34, Wc = 76
Transcribed Image Text:Consider the following four CP investors: (1) Series A: $5M APP (and 2X liquidation preference) or converts to 5M shares. (2) Series B: $10M APP or converts to 8M shares. (3) Series C: $10M APP or converts to 5M shares. (4) Series D: $5M APP or converts to 10M shares. In addition to these investors, the founders hold 1OM shares of common. Find the conversion conditions for these investors. O WD = 40, WB = 55, WA = 76, Wc = 76 WD = 76, WB = 76, WA = 76, Wc = 40 O WD = 76, WB = 55, WA = 55, Wc = 76 WD = 60, WB = 76, WA = 34, Wc = 76
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