5.2 - Equity Forms of Private Equity Flashcards
1
Q
LBO Return
A
R(LBO) = {[firm value at end of debt pay down period / equity portion of LBO transaction] ^(1 / debt paydown period)} - 1
CAIA Formulas > 5.2 - Equity Forms of Private Equity > Flashcards
LBO Return
R(LBO) = {[firm value at end of debt pay down period / equity portion of LBO transaction] ^(1 / debt paydown period)} - 1