Assume the company has no existing cash pre deal. LTM EBITDA at entry Entry and exit EV/EBITDA multiple Amount of acquisition debt financing Total amount of debt paid off by exit Exit year Expected yearly EBITDA growth rate 181.3 8.1 X 768.3 198 4 3.7%

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The answer is 12.7% but i need an explanation. 

Calculate the IRR using the following leveraged buyout information.
Assume the company has no existing cash pre deal.
LTM EBITDA at entry
Entry and exit EV/EBITDA multiple
Amount of acquisition debt financing
Total amount of debt paid off by exit
Exit year
Expected yearly EBITDA growth rate
12.7%
181.3
8.1 x
768.3
198
4
3.7%
Transcribed Image Text:Calculate the IRR using the following leveraged buyout information. Assume the company has no existing cash pre deal. LTM EBITDA at entry Entry and exit EV/EBITDA multiple Amount of acquisition debt financing Total amount of debt paid off by exit Exit year Expected yearly EBITDA growth rate 12.7% 181.3 8.1 x 768.3 198 4 3.7%
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