easy · Private Equity & LBOs
Which of the following would be an incorrect step in a paper LBO when calculating entry equity if OID is present?
- Adding the OID amount to the Enterprise Value as a 'Use'.
- Subtracting the gross debt amount from the funded cash amount.
- Subtracting the total gross debt from the total sum of uses.
- Calculating the OID as a percentage of the total principal of the debt facility.
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