1) All of the following industries have traditionally supported high leverage levels EXCEPT:

a. Cable

b. Gaming

c. Industrials

d. Technology

2) If a PE firm contributes $501.469 million of equity to a company upfront and exits the investment at the end of year five for $1,500 million, what is the internal rate of return?

	a.	21.5%
	b.	20.1%
	c.	23.7%
	d.	24.5%

8) An additional equity investment by the sponsor that is planned to be made after the initial investment to fund an acquisition by the LBO target company would be presented on the Investment Timeline as:

	a.	A positive number equal to the additional equity investment
	b.	A positive number equal to the dividend received
	c.	A negative number equal to the additional equity investment
	d.	A negative number equal to the dividend received

7) Which of the following is a reasonable total leverage ratio for an LBO under normal market conditions?

	a.	5.0x net income
	b.	3.0x EBITDA
	c.	1.0x sales
	d.	5.0x EBITDA