n equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple. The investor is willing to invest $3,000 equity. Assuming 3 years from now EBITDA is $1,600 and the company is sold for a 6x multiple, what will be the equity return assuming no debt paydown
n equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple. The investor is willing to invest $3,000 equity. Assuming 3 years from now EBITDA is $1,600 and the company is sold for a 6x multiple, what will be the equity return assuming no debt paydown
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 10P
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An equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple. The investor is willing to invest $3,000 equity. Assuming 3 years from now EBITDA is $1,600 and the company is sold for a 6x multiple, what will be the equity return assuming no debt paydown?
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