Three years ago, you founded your own company. You invested $118,000 of your own money and received 5.9 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing.RoundPrice ($)Number of SharesSeries B0.551.050.000Series C4.00600,000Series D7 50550,000Based on the information provided above (and that each share of all series of preferred stock is convertible into one share of common stock), what fractions of the firm do the Series B, C, and D investors each own in your firm?Series B investors own(Round to three decimal places.)Series C investors own(Round to three decimal places.)Series D investors own(Round to three decimal places)Next

Fractions of series B,C, and D Explanation:

Answered: Three years ago, you founded your own…

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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Six months ago, you purchased 3,000 shares of ABC stock for $47.06 a share. You have received dividend payments equal to $0.80 a share. Today, you sold all of your shares for $49.74 a share. What is your total dollar return on this investment? $2,400 $10,050 $8,040 $10,440 $20,880
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An investor received a term sheet from a venture capitalist, the key terms of which are summarized in the following table: Amount and Securities: 4,000,000 shares of Series A Preferred Stock. Price Per Share: $1.00 per share (the “Original Purchase Price”). Current Outstanding: 6,500,000 shares of Common Stock. In addition, the company has reserved for issuance under its stock option plan an aggregate of 1,500,000 shares of Common Stock (Reserved Shares). Liquidation Preference: In the event of any liquidation, dissolution or winding up of the Company, the proceeds shall be paid as follows: First pay 1.0 times the Original Purchase Price on each share of Series A Preferred. Thereafter, Series A Preferred participates with Common Stock pro rata on an as-converted basis. Optional Conversion: The Series A Preferred converts 1:1 to Common Stock at any time at the option of the holder. Pre-Money Valuation $8,000,000 Calculate the payoff at maturity to Series A Preferred Stock as well as…
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Kahlua Company had 100,000 shares of common stock outstanding on January 1st. On September 30th, Kahlua sold 48,000 shares of common stock for cash. Kahlua had 10,000 shares of convertible preferred stock outstanding throughout the year. Each preferred stock is $100 par, 6%, and is convertible into 3 shares of common stock. Kahlua also had 500, 8%, convertible bonds outstanding throughout the year. Each $1,000 bond is convertible into 30 shares of common stock. The bonds were issued at par. Net income for the year was $300,000 and the tax rate is 40%. The preferred dividends were paid during the year.Basic earnings per share reported by Kahlua Company for the year is closest to:-$2.14-$2.68-$2.06-$2.36 Diluted earnings per share reported by Kahlua Company for the year is closest to:-$2.14-$2.68-$2.06-$2.36
Sibongile is considering investing in a newly listed company on the JSE, known as Abital Ltd. She comes to you for advice about whether to invest in their bonds or shares, and has collected the following information from the recently published financial statements: Number of outstanding shares 10 000 000 Earnings 25 000 000 Payout ratio 35% Cost of equity 11% Current market price of one share R10 Number of Bonds outstanding 4 000 000 Abital Ltd recently acquired a patent that expires in 3 years. Their earnings are therefore expected to grow at 20% during these 3 years, after which it will decline to a constant 5%. What is the intrinsic value of Abital ltd?
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