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Homework answers / question archive / 25,000 new shares of preferred stock are to be issued in a down round priced at $1
25,000 new shares of preferred stock are to be issued in a down round priced at $1.25 per share. Before the financing round, there are 100,000 shares of preferred stock outstanding with an original conversion price of $2.50. The original investors have weighted average anti-dilution protection. Using the Conversion Price Formula, what is the conversion price of the original preferred stock after the financing round?
$2.25/share |
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$2.42/share |
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$2.02/share |
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$1.25/share |
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