What is the value of the security

Reference no: EM133430541

Question: VCs have invested $5M in a Series A financing round for 5M shares, and the total number of shares is 15M after series A investments.

Term sheet specifies the security structure as PCPC with following conditions.
PCPC: [Alternative 3 (cap on Preferred Stock participation rights): First pay one 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 until the holders of Series A Preferred receive an aggregate of four times the Original Purchase Price.
If exit value W = $ 72, what is the value of the security?

Reference no: EM133430541

Questions Cloud

What was the purpose of the government : What was the purpose of the government What does Jefferson suggest should happen whenever the government becomes "destructive of the ends for

How did the court distinguish the right claimed : How did the court distinguish the right claimed by the plaintiffs from (1) right to abortion and (2) the right to terminate life-sustaining medical treatment?

Rate of return will be the basis for calculating abbys : rate of return for her hedge fund. What percentage of the fund's rate of return will be the basis for calculating Abby's compensation for the year

How can you effectively manage your stress while in college : Stress can negatively impact your intellectual and psychological health, including impaired memory, poor concentration, depression, anxiety, other disorders.

What is the value of the security : Preferred receive an aggregate of four times the Original Purchase Price. If exit value W = $ 72, what is the value of the security

Conduct research using internet searches : research report on Cindy black stock in detail. Conduct research using Internet searches, Humber Library Discover Bar, Canadian Encyclopedia website and course

Who was involved during the recent emergency : What are the overall responsibilities of any public health professional during an emergency? Who was involved during the recent emergency?

What does kurtosis measure : What does kurtosis measure The recovery time from economic trough to a new market peak The extent to which a distribution is tilted toward negative

Why is it necessary to have a consistent method : Why is it necessary to have a consistent method of financial analysis? Is it unethical to deviate from industry standards when analysis is concerned

User Account

All Pages