medium · Investment Banking valuation-core
A Private Equity firm buys a company for $1,000 million using $400 million of equity and $600 million of debt. After 5 years, they sell the company for $1,500 million.
If the debt remains $600 million at exit, what is the MOIC?
- 1.50x
- 2.50x
- 3.75x
- 2.25x
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