CP investors:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

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
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