hard · Private Equity
An early-stage company has 9 million shares outstanding. A Series A investor holds shares with a 0.50 conversion price. A new down-round investment of 1 million is made at 0.10 per share.
Under a weighted average anti-dilution provision, what is the new conversion price for the Series A investor?
- $0.300
- $0.450
- $0.100
- $0.289
Sign up free to see the explanation and track your rank →
More Private Equity 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?