Convertible shares carry no ratchet provisions

Assignment Help Business Management

Reference no: EM133630014

Question

Assume that Pine and Cedar Inc. has the ownership structure described in the cap table below: Owners/Investors Security # of Shares Investment Share Price Founders Common Shares 10 million $250,000 Series A Convertible Preferred Shares 10 million $15 million $1.50 The company needs additional capital, and is seeking funding in a Series B round of financing. An outsider investor is willing to invest $12 million at $0.75 per share. Assuming the Series A investor's convertible shares carry NO RATCHET PROVISIONS, answer the following question:

1. What is the percentage ownership of the Series A investor after the Series B round of financing?

Reference no: EM133630014

Questions Cloud

Describe the most difficult aspects of navigating the client : Describe the most difficult aspects of navigating the client relationship and how you have overcome the challenges discussed in the previous module.

What is duration of the cash flows to life insurance : What is the duration of the cash flows to the life insurance company? What should be the price of the 5-year bonds?

Describe the effectiveness of the consulting solution : Describe the effectiveness of the consulting solution and implementation. Remember that your relationship with the client is confidential.

How important is health insurance in improving health : How important is health insurance in improving health? How do you think your answers would differ if you were a resident of Wyandotte County?

Convertible shares carry no ratchet provisions : Assuming the Series A investor's convertible shares carry NO RATCHET PROVISIONS,

Unexpected changes in foreign exchange rates : Economic exposure can be defined as risk where company values are affected by unexpected changes in foreign exchange rates and has two channels

Discuss the importance of foreign capital flows for country : Take advantage of existing sources available through the library. Discuss the importance of foreign capital flows for the country.

Efficient market hypothesis experiment : One of the elements of your efficient market hypothesis experiment was to construct a portfolio based on stocks picked randomly.

Create competitive advantage through the use of it-is : Create competitive advantage through the use of IT/IS, specifically big data analytics, cloud computing, and artificial intelligence?

User Account

All Pages