medium · Investment Banking
A company is seeking a recapitalization. Its current EBITDA is $200.0M. Lenders are willing to provide a total leverage of 4.5x. The company currently has $600.0M in debt.
How much of a dividend can the company pay if it takes on the maximum new debt possible and uses all proceeds for the dividend?
- 450.0M
- 300.0M
- 900.0M
- 150.0M
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