How does liquidation preference effect investor returns?



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Assume an investor who invested $100 million holds 15% in your company and has a 2x liquidation preference. If you sell your company for $2 billion how much will this investor get without the liquidation preference?
According to my calculation the answer should be 270 but there is no option of 270.Kindly clarify

1 Answer(s)


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Company is sold for $2 billion.
Investor invested $100mn
Then investor will get 15% of $2bn which is $300mn (.15*2bn)

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