On January 2008, your firm raised $10 mill in Series A financing with a 2x liquidation preference, no participation rights, and a $25 post-money valuation. On January 2010, your firm raised $20mill in Series B (less senior) financing with a 1x liquidation preference, no participation rights, and a $40 post-money valuation. What would be the minimum sale price of the firm such that every investor converts? a. 40 b. 100 c. 75 d. 50

On January 2008, your firm raised $10 mill in Series A financing with a 2x liquidation preference, no participation rights, and a $25 post-money valuation. On January 2010, your firm raised $20mill in Series B (less senior) financing with a 1x liquidation preference, no participation rights, and a $40 post-money valuation. What would be the minimum sale price of the firm such that every investor converts? a. 40 b. 100 c. 75 d. 50

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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Question

On January 2008, your firm raised $10 mill in Series A financing with a 2x liquidation preference, no participation rights, and a $25 post-money valuation.

On January 2010, your firm raised $20mill in Series B (less senior) financing with a 1x liquidation preference, no participation rights, and a $40 post-money valuation.

What would be the minimum sale price of the firm such that every investor converts?

a. 40

b. 100

c. 75

d. 50

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