hard · Private Equity & LBOs
An LBO model shows a circular reference between interest expense and the debt schedule.
Which of the following is the standard practitioner method for resolving this in Excel without using a macro?
- Calculating interest on the beginning-of-period debt balance only.
- Enabling iterative calculations in Excel options.
- Using a hard-coded interest figure from the previous year.
- Linking interest expense only to the revolving credit facility.
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