Question
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
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 |
9) What IRR threshold has historically served as the standard for sponsors in considering an LBO?
| a. | 40% | |
| b. | 20% | |
| c. | 10% | |
| d. | 5% |
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
