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Question 8 1 pts Pinder Co is planning on a leveraged buyout of Value Co. Pinder Co has the option of changing its financing
Question 8 1 pts Pinder Co is planning on a leveraged buyout of Value Co. Pinder Co has the option of changing its financing structure so that Pinder Co reduces its financing from Term Loan B to $1,400 million and increases financing from Senior Notes to $3,200 million. What is the percentage point improvement in Pinder Co's IRR if Pinder Co chooses this new financing structure? (Round to the nearest two digits and choose an answer within 3 basis points. Use the LBO template covered in class and assume that all other conditions of the buyout are identical to the assumptions in the lecture. Make sure the assumptions in the lecture are correctly imputed in the template - the IRR prior to making changes should be 19.7%. Also, note that this question is asking for a percentage point improvement. For example, a change from 19.7% to 20.7% is an improvement of 1%.) 9.72% 6.87% 8.26% None of the other answers are correct. O7.47%
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