medium · Investment Banking
A private equity firm acquires a business for $500 million (6.0x EBITDA) using $300 million of debt and $200 million of sponsor equity. After 5 years, the debt is reduced to $150 million through cash sweeps, and the company is sold for $750 million.
What is the Multiple on Invested Capital (MOIC)?
- 3.00x
- 3.75x
- 2.25x
- 1.50x
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