medium · Investment Banking
A private equity firm acquires a business for $1,000 million using 60% debt and 40% equity. After 5 years, the firm sells the business for an Enterprise Value of $1,600 million. At the time of exit, the remaining debt balance is $400 million.
What is the Multiple on Invested Capital (MOIC)?
- 3.0x
- 1.6x
- 4.0x
- 2.0x
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