Reference no: EM132721222

A listed company (MakeMeEvenSmarter Inc.)has offered to fully acquire the Company for a consideration of $50 millio. There was no dividend declared prior to the acquisition. All stock options have been granted to employees. All the investors of Series A Preferred Share are entitled to the terms of previous financing round, these investors include Billy Gate V ,Wally Buffet ,Poly Techno Venture Capita, and Tag Along Venture.

• MakeMeSmart Inc. in Hong Kong with 10,000,000 common shares registered.
• Billy Gate V, a startup investor, had reviewed their ideas. He decided to invest $500,000.00 through SAFE with a post-money valuation cap of $5,000,000.00 and a discount of 5% (SAFE-A Investor).
• After working on the product-solution fit for 6 months, Wally Buffet, another startup investor, has decided to invest $1,000,000.00 through SAFE with a post-money cap of $8,000,000.00 and a discount of 5%. He liked the company so much that he asked for a pro-rata right. (SAFE-B Investor)
• Another 12 months has passed, MakeMeSmart Inc. is looking for another round of financing and would like to raise $4,000,000.00 through Series A financing to continue its development. There are a few venture capital funds which have expressed interests, but none is willing to lead. After four (4) months of roadshow, the Ma's has successfully obtained a term sheet from a venture fund called Poly Techno Venture Capital to invest$3,000,000.00 for 25% of the company with 15% option pool. There is no stock option granted prior to Series A financing. After the term sheet is issued, a venture capital fund Tag Along Venture has committed to participate the remaining funding

Problem 1: How much additional cash is each investor entitled to for common share distribution (round to the nearest dollar)?