Papermill Plc was acquired by a private equity firm, whose investment horizon is 5 years and minimum IRR requirement is 20.0%.

The private equity firm estimates the exit EBITDA and exit EV EBITDA multiple to be 1,200.0 and 11.0x, respectively.

The EBITDA at entry is 1,100.0 and the amount of debt financing raised at entry is 7.0x EBITDA.

The cash flow model built by the private equity firm estimates the debt to be 5.0x EBITDA at exit.

Using assumptions above, estimate Papermill equity valuation at entry.

Sales	1,000.0
Cost of goods sold	600.0
Selling, general and administration	100.0
Interest expense	50.0
Tax expense	75.0

Select one:

9.6

7,200.0

2,893.5

10,593.5