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What does a buffalo do if he needs some extra cash? Visit the BUFFALOAN SHARK.

The Facebook Deal: Equity Lowdown Drill

  • 1.

    If Facebook turns out to be a terrible idea and liquidates, and the assets are worth $210,000, what do the cofounders get? Assume that the ownership is the same as stated in this section.

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    $24.68

  • 2.

    The situation is the same as in Question 1, except that Peter's convertible stock isn't "participating." The company fetches $600,000 in liquidation. How much do each of the cofounders get?