Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Price ($) Series B 0.70 Series C 2.00 Series D 4.00 Number of Shares 1,150,000 550,000 650,000 Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million
shares of Series A preferred stock. Your company has since been through three additional rounds of financing.
Round
Series B
Price ($)
0.70
Series C
2.00
Series D
4.00
Number of Shares
1,150,000
550,000
650,000
Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is
convertible into one share of common stock), what percentage of the firm do you own after the last funding round?
Transcribed Image Text:Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Price ($) 0.70 Series C 2.00 Series D 4.00 Number of Shares 1,150,000 550,000 650,000 Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round?
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