1. Using the provided formula for calculating cumulative dividends, if an investor holds $5,000,000 in Convertible Preferred Shares with a 5% annual dividend rate for 18 months, how much cumulative dividends would they earn?

2. In a "Stacked Preferences" scenario, how are returns from a liquidity event distributed among investors in a startup's equity stack?

3. What is the primary purpose of a waterfall analysis in venture capital?

4. When are cumulative dividends typically paid to preferred stockholders?

5. Two founders came together to launch StartupX, an AI Company focused on political activation. They both contributed $50,000 and issued themselves each 2,000,000 shares. What is the initial share price?

6. In a "Pari Passu Preferences" scenario, how are liquidation proceeds distributed among different rounds of preferred shares in a startup's equity stack?

7. StartupX is closing a $250,000 seed round of capital with Venture Investor A (VIA) in which VIA will receive 22% of the company fully-diluted. Assuming there are 2,000,000 shares currently outstanding, how many new shares will be issued to bring VIA onto the cap table?

8. Venture Investor A (VIA) is exiting from a $1,500,000 investment in StartupX in which they purchased Participating Preferred shares with a 1.25x Return Preference (7% ownership, fully-diluted). Given their investment structure, what will be their final payout assuming a $75,000,000 Exit and a Preference overhang of $10,000,000 (including VIA).

9. Syndicate Investor A (SIA) invested $50,000 in StartupX in the form of a Convertible Note with a 25% discount. A year later StartupX raised $1,500,000 from Venture Investor A (VIA) at a post-money valuation of $8,000,000. This translated into a $5.00 per share price. How many shares will SIA recieive upon its converson of the Note assuming SIA earned $2500 in interest?

10. What is the primary purpose of cumulative dividends for preferred stockholders in a startup?

11. In the context of a waterfall analysis, what is the significance of the term "Last Money In, First Money Out"?

12. Syndicate Investor A (SIA) invested $75,000 in StartupX in the form of a SAFE with a $5,000,000 Cap. A year later StartupX raised $2,000,000 from Venture Investor A (VIA) at a post-money valuation of $8,000,000. This translated into a $7.00 per share price. How many shares will SIA receive upon its conversion of the SAFE?

13. Venture Investor A (VIA) is exiting from a $2,500,000 investment in StartupX in which they received 2,200,000 Convertible Preferred Shares with a 1.5x Return Preference.  Assuming a $50,000,000 exit, Preference Overhang of $10,000,000 (not including VIA), and Total Outstanding Shares of 23,000,000, what will be VIA's final payout (assuming they’re going to do what’s in their best financial interest)?

14. What is the term used to describe the cumulative impact of liquidation preferences on a startup's equity stack?

15. What is the primary purpose of a capitalization table (cap table)?