A VC investor has invested $10 million in a venture that is now being acquired for $50 million. The investment has a 2X liquidation preference. Alternatively the preferred stock is convertible into 25% of the common shares that would be outstanding prior to the acquisition. What is the best payoff the VC investor can get from the acquisition?
A. $12.5 million
B. $27.5 million.
C. Uncertain since this is not a liquidation event.
D. $20 million.Get Finance homework help today
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