easy · Private Equity
A company is acquired for an Enterprise Value of 800M. The buyer uses $500M of debt and $300M of equity. At exit, the Enterprise Value has grown to $1,100M and the debt has been paid down to $350M.
What is the exit equity value?
- 600M
- 450M
- 750M
- 1,450M
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?