medium · Investment Banking ma-lbo
An LBO model shows a Year 2 EBITDA of $290 million. The company has $1,128 million in existing debt. The sponsor performs a $300 million dividend recapitalization.
If the interest rate on the new debt is 8.0%, what is the new Total Debt / EBITDA ratio?
- 5.5x
- 1.0x
- 3.9x
- 4.9x
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