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it is corporate finance can you please do it and explain how
The founders of a startup award themselves 1,000,000 shares of Series A common stock. The company then undergoes three rounds
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Answer #1

Calculating the No of Shares of Round of Funding:-

RounD Funds raided ($) Price per Share ($) No of Shares
(A) (B) [(A)/(B)]
B 455,000 1.30 350,000
C 902,000 2.05 440,000
D 637,000 2.45 260,000
Total No of shares 1050,000

No of shares after all four Series A to D funding = 1,000,000 shares + 1,050,000 shares

= 2,050,000 shares

Total Value of equity now = $ 6,750,000

Equity value per share = $6,750,000/2,050,000 shares

= $3.292683 per share

Total Value of Series B share now = 350,000 shares*$3.292683

= $1,152,439.05

Hence, Option C

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