1. Company BooBoo finally gets sold at $100M. A few years ago, the investor AIG had put in $10M at $40M Pre-money valuation. AIG had argued for a liquidation preference of one time (1X) the investment to be given to the ivnestor prior to dividng pro rata. There were also $5M of unpaid dividends that were due to AIG as part of the liquidation preference. When all distributions have been made, the investor's share of the sales price ($100M) is worth:
a. impossible to tell
b. $20 M
c. $26.2 M
d. $32.0 M
e. $36.4 M
2. Which of the following pairs of words best distinguish finance from other disciplines?
A. Debit and credit
B. Revenue and cost
C. Profit and loss
D. Time and risk
E. Stock and bond