Consider the case of XYZ Partners from Example 3.3. Now, instead of using a GVM of 2.5 (as in the example), assume that this GVM is unknown and equal to K.
(a) For any given K, solve for the carried interest, value multiple, and GP%.
(b) How large must K be for the value multiple to be greater than 3?
(c) How would your answer to parts (a) and (b) change if the carry basis were equal to investment capital?