Determine the equity to capital ratio for the financing of a potential leveraged buy out of Cheap&Cheerful

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Question:

Determine the equity to capital ratio for the financing of a potential leveraged buy out of Cheap&Cheerful Grocer.

Use the below financial statement excerpts and assume Cheap&Cheerful's existing net debt will be refinanced.

Equity purchase price	10,000.0
Debt issuance fees	235.0
Advisory fees	310.0
Debt financing available (multiple of EBITDA)	6.0 x
LTM operating profit	970.0
Depreciation and amortization	549.0

Select one:

39.5%

5,944.2

15,058.2

66.4%

Posted Date: Sep 10, 2021 12:02 AM

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Determine the equity to capital ratio for the financing of a potential leveraged buy out of Cheap&Cheerful

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