hard · Private Credit & Debt
A 5-year LBO model assumes an entry EBITDA of $50 million and a 7.0x entry multiple. The acquisition is financed with $250 million of debt. If EBITDA grows by 5% annually and the exit multiple is 7.5x, calculate the equity MOIC assuming $100 million of debt is paid down during the hold.
- 4.1x
- 3.3x
- 1.8x
- 2.5x
Sign up free to see the explanation and track your rank →
More Private Credit & Debt practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower mus
- What is the Dividend Coverage ratio?
- What is the blended interest rate paid by the borrower?
- What is its current Debt-to-Equity (Leverage) ratio?
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo