One of my colleagues has asked for my help on a project that his son is working on for an internship. I can’t seem to decipher what is being asked, particularly in the format given. I’ve asked for some feedback but I think that the person who asked is traveling, and the poor kid needs to respond soon. So I’m hoping that one of the many experts here can help me decipher this. I’ve copied and pasted exactly as given:
Please do this in a presentable chart for email or handout.
1.) What is the payout on a 2 year convertible note/loan with an 8%
interest accrual for each year for 25k, 50k, 75k, and 100k?
2.) If they convert that note to equity (interest included) at a
1.3million dollar valuation, what percentage of the company do they get.
- include percentage for 25, 50, 75, and 100k conversion
3.) Company is acquired for 25, 50, 75, 100million, what
is the dollar amount payed to them upon acquisition for percentage