1. Using the following information detailed below, calculate the percentage of equity contribution $180m Total usage Total debt 9.0x 5.0 x 1.0 x $30m EBITDA Entry multiple Senior debt multiple Mezzanine debt multiple Transaction expenses Select one: 3.43.6% D. 52.8% c. 34.5% d. 32.7% Equity contri Equity contri 1,650.00 1,080.00 570 34.50%
1. Using the following information detailed below, calculate the percentage of equity contribution $180m Total usage Total debt 9.0x 5.0 x 1.0 x $30m EBITDA Entry multiple Senior debt multiple Mezzanine debt multiple Transaction expenses Select one: 3.43.6% D. 52.8% c. 34.5% d. 32.7% Equity contri Equity contri 1,650.00 1,080.00 570 34.50%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:1. Using the following information detailed below, calculate the percentage of equity contribution.
$180m
9.0 x
5.0 x
Mezzanine debt multiple 1.0 x
Transaction expenses
$30m
EBITDA
Entry multiple
Senior debt multiple
Select one:
a. 43.6%
b. 52.8%
c. 34.5%
d. 32.7%
Total usage
Total debt
Equity contri
Equity contri
1,650.00
1,080.00
570
34.50%
Transcribed Image Text:Using the following information detailed below, calculate the
percentage of equity contribution.
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