medium · Investment Banking ma-lbo
An LBO sponsor acquires a company for an Enterprise Value of 2,000 million using 1,400 million of debt and 600 million of equity. After 5 years, the Enterprise Value is 2,800 million and the debt has been reduced to 800 million.
What is the Multiple on Invested Capital (MOIC)?
- 2.5x
- 1.4x
- 3.3x
- 4.7x
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