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A Cram-Down Round Has No Effect on Founders' Ownership as Founders

question 20

True/False

A cram-down round has no effect on founders' ownership as founders are normally protected against dilution.


Definitions:

Dividends

Proceeds allocated by a corporation to its share owners, principally derived from the business's earnings.

Rate Of Return

The fiscal growth or shrinkage in an investment's value during a particular lapse of time, marked as a percentage of the initial investment expense.

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

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