University of California Irvine Risk Management Question

I’m working on a risk management question and need an explanation and answer to help me learn.

Aggie Ventures I invested $4M in a startup, Cicada Pharmaceuticals, in a Series A investment. The investment is structured as redeemable preferred ($4M) and 10M shares of common stock. The founders and employees (together called the “founders”) have claims on a total of 14M shares of common stock (as exercised). Which of the following is the correct exit diagram for the Series A investors? Look at attachment for multiple choice answers and select from those options.