medium · Investment Banking
A private equity firm acquires a business for $800 million using $500 million of debt and $300 million of equity. After 5 years, the firm sells the business for $1,200 million. During the hold period, the company generated enough cash to repay $200 million of debt.
What is the Multiple on Invested Capital (MOIC)?
- 4.0x
- 1.5x
- 2.3x
- 3.0x
Sign up free to see the explanation and track your rank →
More Investment Banking practice
- What is the Multiple on Invested Capital (MOIC)?
- What is the control premium?
- Which valuation methodology would likely produce the 'floor' valuation for a mature indust
- Which of the following changes, held in isolation, would most likely achieve this?
- What is the Multiple on Invested Capital (MOIC)?
- If a company has an Unlevered Free Cash Flow (UFCF) of $500 million in Year 5, a WACC of 1
- What is the 3-year Compound Annual Growth Rate (CAGR)?
- If a company's Net Debt is negative, what is the relationship between its Equity Value and