When an LBO sponsor wishes to exit its investment in 5 years, one way to find the equity value of a company at the LBO sponsors exit year is to:

a.Use an Enterprise Value/Sales multiple to find Enterprise Value and then subtract net debt

b.Use an Enterprise Value/EBITDA multiple to find Enterprise Value and then subtract net debt

c.Use a Price/Earnings multiple to find Equity Value

d.All of the above

2.

While equity contribution went as low as the single digits in the 1980s, the current split between equity and debt in an LBO deal is best characterized as:

a.Equity 10%; Debt 90%

b.Equity 90%; Debt 10%

c.Equity 65%; Debt 35%

d.Equity 35%; Debt 65%

A company has the following information:

2014 Revenues of $5 billion

2013 Accounts receivable of $400 million

2014 Accounts receivable of $600 million

What are the days sales outstanding (DSO) for this company?

a.29.2 days

b.36.5 days

c.44 days

d.60 days

A company has the following information:

2014 Revenues of $8 billion

2014 COGS of $5 billion

2013 Accounts receivable of $400 million

2014 Accounts receivable of $600 million

2013 Inventories of $1 billion

2014 Inventories of $800 million

2013 Accounts payable of $250 million

2014 Accounts payable of $300 million

What are the inventory days for the company?

a.58.4 days

b.65.7 days

c.70 days

d.73 days