Your company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic liquidation preference. a. How much would the company have to sell for in order for common shareholders to receive a total of $5m? b. How much would the company have to sell for in order for common shareholders to receive a total of $50m?

Your company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving a basic liquidation preference. a. How much would the company have to sell for in order for common shareholders to receive a total of $5m? b. How much would the company have to sell for in order for common shareholders to receive a total of $50m?

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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