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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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