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The partners at MoPari consider the acquisition of ABC Inc. through a leveraged buyout. ABC's projected EBITDA for next year is $100 million and the

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The partners at MoPari consider the acquisition of ABC Inc. through a leveraged buyout. ABC's projected EBITDA for next year is $100 million and the expected growth rate over the next 5 years is 5% per year. An MD at MoPari has determined that the debt capacity of ABC is 4.4x EBITDA. The financing structure assumes full amortization of senior debt (35% of debt capital) in 5 years. The deal- related expenses are $2 million. What is the affordable price if MoPari requires 30% rate of return and expects an exit in 5 years at an EBITDA multiple of 5.0x? Show a table with Sources and Uses of funds. The partners at MoPari consider the acquisition of ABC Inc. through a leveraged buyout. ABC's projected EBITDA for next year is $100 million and the expected growth rate over the next 5 years is 5% per year. An MD at MoPari has determined that the debt capacity of ABC is 4.4x EBITDA. The financing structure assumes full amortization of senior debt (35% of debt capital) in 5 years. The deal- related expenses are $2 million. What is the affordable price if MoPari requires 30% rate of return and expects an exit in 5 years at an EBITDA multiple of 5.0x? Show a table with Sources and Uses of funds

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