medium · Private Equity paper-lbo
Which of the following scenarios would result in an increase in MOIC without any change in the Exit Enterprise Value or the company's EBITDA growth?
- Increasing the entry leverage ratio while keeping the purchase price the same.
- Expanding the holding period from 3 to 5 years.
- Refinancing debt at a higher interest rate.
- Using free cash flow to pay down debt during the holding period.
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