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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Company A has EBITDA of $110 million and debt of $30 million, assuming it has no cash. The total enterprise value of the company is at 3x EBITDA. A growth equity fund invests $200 million of new capital in Company A.
What fraction of equity is controlled by the PE firm after this investment?
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