hard · Private Equity pe-core
A growth equity investor holds Series A convertible preferred shares with a conversion price of $9.00. A subsequent Series B 'down round' raises $3M at a share price of $6.00. There were 2,666,667 shares outstanding before the round (broad-based).
If the Series A has broad-based weighted-average anti-dilution protection, what is the new conversion price?
- $8.53
- $7.50
- $6.00
- $8.78
Sign up free to see the explanation and track your rank →
More Private Equity pe-core 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?