Assignment8 - 3. What share of the companys value do the...

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Finance 374S- Entrepreneurial Finance Assignment 8: Walnut Venture Associates (D)- part I Bob O’Connor has asked you to evaluate the offer he has received from the RBS Group. In your analysis give consideration to the following points: 1. What are the vesting provisions? What is happening to O’Connor’s stocks? 2. Who will control the company if this deal is done in the terms described?
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Unformatted text preview: 3. What share of the companys value do the investors have a share on? 4. How do the proposed securities impact on existing investors risk and return? 5. Describe the payoffs to the Redeemable Preferred (RP) and Convertible Preferred (CP) as a package of securities in five years. Remember that there are dividends that accrue. At what point would the CP holders convert?...
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