medium · Investment Banking
In an LBO, a financial sponsor invests $500 million in equity to acquire a company. After 5 years, the company is sold for an Enterprise Value of $3,000 million. At that time, the company has $1,200 million in debt and $200 million in cash.
What is the Multiple on Invested Capital (MOIC)?
- 3.0x
- 4.0x
- 6.0x
- 3.6x
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