medium · Private Equity paper-lbo
A Management Incentive Plan (MIP) is sized at 12% of fully-diluted equity. At entry, the total equity value is 220 million. At exit, the equity value is 600 million.
If the MIP strike price is set at the entry valuation, what is the net value received by the MIP holders at exit?
- $26.4 million
- $45.6 million
- $72.0 million
- $52.8 million
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