I’d not really thought about it before reading the first post I linked but it’s clearly incorrect to take valuation = price payed for preferred shares * shares outstanding because you’re pricing the preferredness at 0 when it is not worth 0.
I’d not really thought about it before reading the first post I linked but it’s clearly incorrect to take valuation = price payed for preferred shares * shares outstanding because you’re pricing the preferredness at 0 when it is not worth 0.