9. Henry & Murdock LLC., is PE firm. Three years ago the firm acquired 60% stake in Kandles Inc., valuing it at a PPM of 5.5x. Today Henry and Murdock have agreed to sell their 60% stake to another PE firm at a PPM of 6.5x. Which of the following can be inferred based on this information? I. Henry & Murdock is profiting through multiple arbitrage. II. Kandles is involved in a secondary buyout. III. Henry & Murdock is conducting a leveraged recapitalization of Kandles.

A. II only B. II and III C. I and II D. I and III E. I, II and III