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conversion discount


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1 حسابداری و مالی:: نرخ تنزیل تبدیل

• Key terms and definitions associated with convertible debt, such as conversion triggers, valuation caps, and conversion discounts. • Simple math for calculating the impact of conversion discount rates and resulting equity ownership on conversion. Here's an example of how the conversion discount works: Simply multiply the conversion discount percentage by the price per share established in the Series A equity round, then subtract the resulting share price discount from the Series A share price. When the conversion occurs, the conversion calculation uses the lower valuation cap defined in the convertible note to calculate a conversion discount percentage, which results in the note holder converting the convertible debt into more shares of the Series A stock, thus resulting in less dilution of there investment stake.

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