Anti-dilution protection, Business Economics

Assignment Help:

Suppose that EBV makes a $6m Series A investment in Newco for 1m shares at $6 per share. One year later, Newco has fallen on hard times, and receives a $6m Series B financing from Talltree for 6m shares at $1 per share. The founders and the stock pool have claims on 3m shares of common stock.

Following the Series B investment, what percentage of Newco (fully diluted) would be controlled by EBV? Consider the following cases:

a) Series A has no anti-dilution protection

b) Series A has full-rachet anti-dilution protection

c) Series A has round-based weighted-average anti-dilution protection

d) Series A has percentage based anti-dilution protection in which the faction of the firm owned by EBV remains constant.


Related Discussions:- Anti-dilution protection

Long-run average cost curve, Why might the point at which the long-run aver...

Why might the point at which the long-run average cost curve levels out change over long periods of time? include a diagram.

Circular flow, the central problem facing a group of survivors on a ship

the central problem facing a group of survivors on a ship

The spillover effect, QUESTION 1 i) Use a simple human capital model to...

QUESTION 1 i) Use a simple human capital model to explain the rationale for undertaking higher education ii) Why do some people vary significantly in the amounts of human ca

Railways economics, AsEvaluate the implications of implementing this ideal ...

AsEvaluate the implications of implementing this ideal product mix in Transnet Freight Rail.

Difference between absolute and comparative advantage, What is the differen...

What is the difference between absolute and comparative advantage? Difference between absolute and comparative advantage: • Absolute advantage arises while a country or reg

Benefits for transferring drivers to transit, Distribution of benefits for ...

Distribution of benefits for transferring drivers to transit during a congested morning commute A residential suburb has N = 30,000 commuters who drive alone to jobs in a cen

Explain about the term underemployment and unemployment rate, Explain about...

Explain about the term underemployment and unemployment rate. Discouraged employees are non-working people who are able of working although are not actively in search of a job.

Plot the budget line and evaluate slope, This problem illustrates a consume...

This problem illustrates a consumer's decision to be homeless in the presence of a minimum housing-consumption constraint, imposed through misguided government regulation. Let c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd