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What is cash-on-cash return

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a. Jones, the investor, proposes taking participating preferred stock with 1x liquidation preference in return for her $5 million investment. Draw the payoff diagram for this security from Jones' perspective, assuming she invests $5 million at a pre-money valuation of $14.75 million with no option pool

b. What is her cash-on-cash return( money received divided by investment) if New Venture exits in December 2020 at a $150 million valuation?

Reference no: EM133111369

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