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You are analyzing an LBO with an expected 4-year holding period. EBITDA in the year that just ended was $60MM and you expect it to

You are analyzing an LBO with an expected 4-year holding period. EBITDA in the year that just ended was $60MM and you expect it to grow at 12%. Q9: Assume the firm is acquired for $160MM of private equity and $200MM of debt. They expect that the firm will still have $150MM of debt at the time of exit. What IRR does the PE firm hope to receive in this scenario?

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