Private Equity

Exam 1: 2019/20 T3

Comprehensive exam-prep quiz on PE fund structure, PE return measures, LBO candidates, mezzanine financing, return decomposition, debt coverage, IRR, sweet equity, and sources-and-uses. Source:

Question 17 of 22

Calculate the cash cover.

Use the following values:

EV = 2,000
EBITDA = 800
Debt = 1,200
Cash = 200
Cash interest = 10
Debt repayments = 100
Cash flow available for debt service = 120

Write your answer in your own words. It will be graded with Gemini.

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