hard · Investment Banking ma-lbo
In an LBO, 'Paper Profits' are often tracked using the Multiple on Invested Capital (MOIC). If a sponsor invests 400 million, and after 4 years the Enterprise Value has increased by500 million while Debt has remained constant, what is the MOIC? (Assume no dividends were paid).
- 2.25x
- 1.25x
- 2.00x
- 3.25x
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