Question
A target was purchased for $1,500.0 million with an equity contribution of $500.0 million, and by year 5 $500.0 million of cash flow was used
A target was purchased for $1,500.0 million with an equity contribution of $500.0 million, and by year 5 $500.0 million of cash flow was used to repay debt. Assuming the enterprise value remains the same and the sponsor sells the target for the Enterprise Value, what is the value of the sponsors equity?
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
