Find the payoff, Internal rate of return (IRR) and payoff multiple for equity claimants for a private equity firm. The firm is going for LBO transaction with value of $ 1000 M in 60% debt and 40% equity mix and has the following characteristics in dollar Million:

Exit occurs in five years at a projected multiple of 1.80.

The equity investment consists of $310 M in preference shares, $80 M in equity by PE firm and $10M equity by management. Preference shares guaranteed a 14% CAGR return payable at exit. Equity of PE firm is promised 90% of companys residual value at exit after creditors and preference shares are paid Management equity receives the other 10% residual value By exit, the company will have paid off $350 of the initial debt.