Using information about the following company, calculate the share premium / (discount) a private equity house will be willing to pay for the Company. Assume pre deal net debt is refinanced. Assume the company has no dilutive securities.

a) 22.6%

b) -13.4%

c) -18.4%

d) 58.3%

Required IRR 22.5% Total debt immediately after the LBO 553.6 Exit multiple (EV/EBITDA) 8.9 x EBITDA % growth per year 6.2% Exit year 4 % of debt remaining at exit 54.2% Current share price 17.3 Shares outstanding 44.6 LTM EBITDA 159.4 Pre deal net debt 275.8