Thanks, that makes a lot more sense, and you're right that is the point that was being made.
It would be nice to see the scenarios expanded and stressing the outcomes for different classes of shares.
For example, on a second read I understand it that in scenario B the investor paid $100M for 3.33% of the "$3B" company, and gets a $108M payout even if the company sells for $1B (which would be equivalent to 10.8% of how much the buyer bought it for). If it sells for $30B, then he gets $1B.
Comments
Thanks, that makes a lot more sense, and you're right that is the point that was being made.
It would be nice to see the scenarios expanded and stressing the outcomes for different classes of shares.
For example, on a second read I understand it that in scenario B the investor paid $100M for 3.33% of the "$3B" company, and gets a $108M payout even if the company sells for $1B (which would be equivalent to 10.8% of how much the buyer bought it for). If it sells for $30B, then he gets $1B.