10. QUESTION 8The table indicates that the founders should not have sold 400 shares in the series D round for $2.49 a share. The funding round lowered the value of the series A investors.Founder SharesoutsideinvestmentValue ofapercentsold tooutsideinvestor012345678O TrueO Falsefundingroundselfpre-seedseedSeries ASeries BSeries CSeries DSeries EIPOTotalOutstanding shares100014001800220026003000340038004800sharessold tooutsideinvestors040040040040040040040010000$480.00$576.00$691.20028.57%22.22%18.18%15.38%13.33%11.76%10.53%$829.44$995.33$1,194.39$1.433.27$10,000.00 20.83%100010001000100010001000100010001000founderShare$1$1.20$1.44$1.73$2.07$2.49$2.99$3.58$10

The shares that are issued to the organizers of the company are known as the founder shares. These…

Answered: The table indicates that the founders…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.4C

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