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Private Equity

Exam 2: T4 2020

Comprehensive exam-oriented quiz based exactly on the Private Equity T4 2020 exam and solution file.

Question 11 of 14

Please consider the following entry and exit statistics for a Target company and complete the returns breakdown in the table below.

  • EBITDA is 60 at entry and 100 at exit;
  • Net debt is 10 at entry and (30) at exit;
  • Implied EV/EBITDA is 10x at entry and 8x at exit.

Fill the missing cells exactly as formatted in the solution key. Use '-' for empty/zero impacts. Negative values should have a leading minus sign, e.g., -200.

Complete the exercise: Fill the missing cells exactly as formatted in the solution key. Use '-' for empty/zero impacts. Negative values should have a leading minus sign, e.g., -200.
EntryEBITDA GrowthMultiple arbitrageDeleveragingCombined
EBITDA
60
-
EV/EBITDA
10x
-
EV
600
-
(-) Net Debt
(10)
-
-
Equity
590