Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If...

 

Transcribed Image Text:

Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR? Assume Alec J's PE firm has a requried minimum IRR on their investments of 30% *If the Alec J's PE firm had purchased Madill Enterprises with $400 million of assets by using $300 million in debt Assume over the next five years, Alec J's PE firm pays down $120 million of debt used to finance the purchase of Madill * Assume Alec J's PE firm can sell Madill Enterprises for 8x Enterprise Value to EBITDA multiple. What is the minimum EBITDA Madill Enterprises would need to generate five years from noew for Alec J's PE firm to make their minimum IRR?

Answer rating: 100% (QA)

To determine the minimum EBITDA that Madill Enterprises would need to generate five years from now f... View the full answer