Case #6.docx - Briana Rodriguez Case#6 Trendsetter 1 Compare AND discuss 3 differences between the two offered term sheets First of all Alpha

Case #6.docx - Briana Rodriguez Case#6 Trendsetter 1...

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Briana Rodriguez- Case #6 Trendsetter 1. Compare AND discuss 3 differences between the two offered term sheets. First of all, Alpha Investment’s doesnt include any dividends, neither accrued or cumulative. The dividends that are available turn only payable when declared by the board of directors and not in liquidation. Compared to Mega’s term sheet includes cumulative accruing dividends for preferred shares that are, like Alpha’s, payable when declared by the board of directors but also payable in the event of a liquidation. Secondly, Alpha’s liquidation has a deal,with an initial pay issuance price plus declared but unpaid dividends on each share of Series A preferred stock. Mega’s requires to pay all preferred shareholders the amount of the initial issuance price plus the declared and unpaid dividends, ($1.25 @ $1.00).
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