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FINANCIAL ACCOUNTING
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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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. Find the conversion conditions for these investors. Group of answer choices WD = 40, WB = 55, WA = 76, Wc = 76 WD = 76, WB = 76, WA = 76, WC = 40 WD = 76, WB = 55, WA = 55, Wc = 76 WD = 60, WB = 76, WA = 34, WC = 76 %3D %3D %3D
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 10M shares of common. Find the conversion conditions for these investors. Group of answer choices WD = 40, WB = 55, WA = 76, Wc = 76 WD = 76, WB = 76, WA = 76, WC = 40 WD = 76, WB = 55, WA = 55, Wc = 76 WD = 60, WB = 76, WA = 34, WC = 76 %3D %3D %3D
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