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A private equity firm is considering a quick-flip leveraged buyout: It can buy a company today for $13 million and sell it next year for
A private equity firm is considering a quick-flip leveraged buyout: It can buy a company today for $13 million and sell it next year for $21 million. What is the expected IRR of this project? Assume that the cost of capital is 10%. a. 43.72% b. 33.50% c. 61.54% d. 46.85%
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