Calculate the IRR using the following leveraged buyout information.

Assume the company has no existing cash pre deal.

a) 12.0%

b) 3.6%

c) 18.6%

d) 25.3%

*Please provide explanation.

LTM EBITDA at entry 167.1 Entry and exit EV/EBITDA multiple 7.2 x Amount of acquisition debt financing 747.2 Total amount of debt paid off by exit 261.9 Exit year 4 Expected yearly EBITDA growth rate 3.6%