Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 23, Problem 8P
a.
Summary Introduction
To determine: The amount that will be received by Series A, Series B, and common shareholders if BB is sold for $85,000,000.
Introduction:
Liquidation is a procedure by which a company dissolves. The assets and property of the company are redistributed to their debt holder and shareholder.
b.
Summary Introduction
To determine: The amount that will be received by Series A, Series B, and common shareholders if BB is sold for $100,000,000.
c.
Summary Introduction
To determine: The amount that will be received by Series A, Series B, and common shareholders if BB is sold for $200,000,000.
d.
Summary Introduction
To determine: The amount that will be received by Series A, Series B, and common shareholders if BB is sold for $200,000,000.
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Students have asked these similar questions
Flash Technologies plc has raised £14 million in a Series A round with £42 million post- money value and a 2x liquidation preference, and £29 million in a Series B round with a £73 million post-money value and a 2.5x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if the company is sold for £200 million?
Your company raises a $3m A-round at a $7m pre-$ valuation, with investors receiving
a basic liquidation preference.
a. How much would the company have to sell for in order for common shareholders to
receive a total of $5m?
b. How much would the company have to sell for in order for common shareholders to
receive a total of $50m?
On January 2008, your firm raised $10 mill in Series A financing with a 2x liquidation preference, no participation rights, and a $25 post-money valuation.
On January 2010, your firm raised $20mill in Series B (less senior) financing with a 1x liquidation preference, no participation rights, and a $40 post-money valuation.
What would be the minimum sale price of the firm such that every investor converts?
a. 40
b. 100
c. 75
d. 50
Chapter 23 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 23.1 - Prob. 1CCCh. 23.1 - Prob. 2CCCh. 23.2 - Prob. 1CCCh. 23.2 - Prob. 2CCCh. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CCCh. 23.4 - Prob. 1CCCh. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1PCh. 23 - What are the advantages and the disadvantages to a...
Ch. 23 - Prob. 3PCh. 23 - Suppose venture capital firm GSB partners raised...Ch. 23 - Prob. 5PCh. 23 - Prob. 6PCh. 23 - Prob. 7PCh. 23 - Prob. 8PCh. 23 - Prob. 9PCh. 23 - Prob. 10PCh. 23 - Prob. 11PCh. 23 - Prob. 12PCh. 23 - What is IPO underpricing? If you decide to try to...Ch. 23 - Prob. 14PCh. 23 - Prob. 15PCh. 23 - Prob. 16PCh. 23 - Prob. 17PCh. 23 - Prob. 18PCh. 23 - Prob. 19PCh. 23 - Prob. 20P
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