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Description: A Company is generating $10M EBITDA at exit with an exit multiple of 15X. There is a 15% Management Rollover Ownership. Initial Sponsor Equity Was $35M. What is my CoC return? O 3.6X 4.3X 4.0X 2.6X

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A Company is generating $10M EBITDA at exit with an exit multiple of 15X. There is a 15% Management Rollover Ownership. Initial Sponsor Equity Was $35M. What is my CoC return? O 3.6X 4.3X 4.0X 2.6X

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter17: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 5P

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

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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A Company is generating $10M EBITDA at exit with an exit multiple of 15X. There is a 15% Management Rollover Ownership. Initial Sponsor Equity Was $35M. What is my CoC return? O 3.6X 4.3X 4.0X 2.6X

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