hard · Private Equity pe-core
A growth equity fund invests 8 million for a minority stake in a company. The investor uses a broad-based weighted average anti-dilution provision.
If the company previously had 9 million shares outstanding at a conversion price of $0.50 and subsequently raises $1 million in a down-round at $0.10 per share, what is the new conversion price for the fund?
- $0.289
- $0.325
- $0.100
- $0.421
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