hard · Private Equity & LBOs
TechGrowth issues Series B preferred shares at $5.00/share. An existing Series A investor holds 1M shares originally purchased at $10.00/share, protected by a 'Full Ratchet' anti-dilution provision.
After the Series B round, how many shares will the Series A investor hold via their conversion right?
- 2M shares
- 500K shares
- 1M shares
- 1.5M shares
Sign up free to see the explanation and track your rank →
More Private Equity & LBOs practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?