advanced-lbo — Private Equity Practice Questions
130 free Private Equity questions on advanced-lbo: 26 easy, 85 medium, and 19 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn advanced-lbo from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.
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- If Year 1 Excess Cash Flow is $40M, how much is used to pay down the debt?
- If the actual SOFR rate drops to 0.50%, what is the total interest rate paid by the borrower?
- What is the maximum debt allowed if the leverage covenant is set at 5.0x Covenant EBITDA?
- Which option has the lower weighted average cost of debt?
- What is the sponsor's required equity contribution?
- If no principal is repaid, what is the outstanding principal balance at the end of the first year?
- If EBITDA is $100M and the debt raised is $600M, what is the total equity check?
- An LBO analysis estimates a company can support $400m of deb… — What is the minimum LTM EBITDA required to sup
- If the loan is refinanced at the end of year four, what is the approximate gross yield to maturity (YTM)?
- If the blended interest rate is 8%, which constraint is more restrictive for the initial debt capacity?
- What is the outstanding principal balance at the end of Year 2, assuming no early prepayments?
- If the company has $40M in receivables ($5M overdue >90 days) and $20M in inventory, what is the maximum draw?
- If it is required to maintain a Fixed Charge Coverage Ratio (FCCR) of 1.5x, what is the maximum mandatory debt
- If the sponsor uses a 6.0x leverage multiple, what is the maximum debt capacity based on 'Adjusted EBITDA'?
- If SOFR is 4.0%, which structure has the higher weighted average cost of debt?
- An LBO model shows a Year 1 EBITDA of $85M, cash interest of $17.7M, and a mandatory debt amortization of $30M
- In Year 1, if SOFR is 4.5%, and the company uses its entire $20M excess cash flow to pay down the Term Loan B
- If the floor on SOFR is 1.0% and the current SOFR is 0.5%, what is the total annual interest expense?
- If the weighted average interest rate is 7.0%, what is the implied maximum debt capacity?
- If the weighted average blended interest rate for the acquisition financing is 7%, what is the implied maximum
- If the loan is expected to be repaid in full at the end of Year 4, what is the approximate annual all-in yield
- If the debt is held for 5 years, how much is the mandatory debt repayment over the total period?
- If no cash interest is paid, what is the outstanding principal balance of the loan at the end of Year 1?
- How much cash proceeds from the debt facility are actually available to fund the purchase at closing?
- If the borrower chooses to PIK the 2% for the first year, what is the starting principal balance for the calcu
- An LBO candidate is being evaluated for a possible takeover.… — Based on these constraints, what is the maximu
- If LIBOR is currently 0.5%, what is the effective annual cash interest rate for the borrower (excluding OID am
- Calculate the year-1 gross yield for a $100M unitranche loan with the following terms: SOFR + 600 bps (1% floo
- If the interest rate on its debt is 5.0%, what is the total amount of debt outstanding?
- At the end of a 5-year hold, what is the closing balance of the mezzanine facility assuming no interim princip