Question
Determine the equity to capital ratio for the financing of a potential leveraged buy out of Cheap&Cheerful Grocer. Use the below financial statement excerpts and
Determine the equity to capital ratio for the financing of a potential leveraged buy out of Cheap&Cheerful Grocer.
Use the below financial statement excerpts and assume Cheap&Cheerful's existing net debt will be refinanced.
Equity purchase price | 10,000.0 |
Debt issuance fees | 235.0 |
Advisory fees | 310.0 |
Debt financing available (multiple of EBITDA) | 6.0 x |
LTM operating profit | 970.0 |
Depreciation and amortization | 549.0 |
Select one:
39.5%
5,944.2
15,058.2
66.4%
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