Question
Assuming an initial purchase price of $500 million, a 30.0% initial equity contribution by the financial sponsor, Year 5 EBITDA of $95 million, an exit
Assuming an initial purchase price of $500 million, a 30.0% initial equity contribution by the financial sponsor, Year 5 EBITDA of $95 million, an exit multiple of 7.1x, and Year 5 net debt of $250 million, please calculate the IRR to the financial sponsor.
a.43.9%
b.29.7%
c.35.1%
d.23.1%
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Get StartedRecommended Textbook for
International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
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