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Business, 16.04.2020 01:52 CMCM5295

The entrepreneur invested $1000 a year ago at $1 per share. An VC investor has now invested $5000 in exchange for 2000 preferred shares. The preferred shares have full-ratchet anti-dilution protection. What can you say about the value per share of the entrepreneur's shares after the VC round?

A. The entrepreneur's common shares are worth less than $2.50 per sharer.
B. The entrepreneur's common shares are worth $2.50 each
C. The entrepreneur's common shares are worth more than $2.50 each
D. The entrepreneur's common shares could be worth more or less than $2.50 each.

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