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  • Group Exercise #15 - Waterfall

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    Dhruv Kapoor
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    This document provides information to calculate the returns from two different buyout scenarios of a company based on its capitalization table. It lists the original investments, equity stakes, dividend rates, and hold times for preferred stock and common stock. It then provides details on two different buyout offers of $75 million and $18 million, and instructs students to calculate the returns and payouts to the different shareholders based on the redemption preferences and dividends.

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    This document provides information to calculate the returns from two different buyout scenarios of a company based on its capitalization table. It lists the original investments, equity stakes, dividend rates, and hold times for preferred stock and common stock. It then provides details on two different buyout offers of $75 million and $18 million, and instructs students to calculate the returns and payouts to the different shareholders based on the redemption preferences and dividends.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    21 views1 page

    Group Exercise #15 - Waterfall

    Uploaded by

    Dhruv Kapoor
    This document provides information to calculate the returns from two different buyout scenarios of a company based on its capitalization table. It lists the original investments, equity stakes, dividend rates, and hold times for preferred stock and common stock. It then provides details on two different buyout offers of $75 million and $18 million, and instructs students to calculate the returns and payouts to the different shareholders based on the redemption preferences and dividends.

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    © All Rights Reserved
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    of 1

    Circle

    Class Period: 9:30 11:15 Team #: ___________


    Group Exercise #15 –
    Waterfall Calculations

    Calculate the waterfall based on the following capitalization table. Assume the cash
    buyout under two different scenarios.


    Investment $10,000,000 $1,000,000 $0
    Equity Part Pref (2x) Conv Pref (1x) Common
    Dividends 10% 8% 0
    Hold Times 19 Months 31 Months 48 Months
    13,000,000 61.90%

    Founders
    Series A 3,000,000 14.29%
    Series B 5,000,000 23.81%

    Buyout #1 $75,000,000 Buyout #2 $18,000,000


    Return Preferences + Dividends
    Return Preferences + Dividends

    Series B Return Pref Series B Return Pref


    Dividends Dividends

    Series A Return Pref Series A Return Pref
    Dividends Dividends
    Proceeds to the Common

    Proceeds to the Common




    Gross Proceeds
    Redemption Share Price
    Redemption Share Price

    Common Payout Common Payout
    Shares
    Payout Shares Payout
    Series B 5,000,000
    Series B 5,000,000
    Series A 3,000,000 Series A ------
    Founders 13,000,000 Founders 13,000,000

    ****FOR INSTRUCTOR****


    ________ Satisfactory (1pt) ____________Good (2pts) _____________Excellent (3pts)

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