A
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Equity ValuationHard

A private equity sponsor acquires Brightfield Consumer Products for $600 million using $390 million in debt and $210 million in equity. Over a 5-year holding period, EBITDA grows from $75 million to $98 million, and cumulative debt paydown is $165 million. If the exit multiple equals the 8.0x entry multiple, the sponsor's equity multiple (MOIC) is closest to:

CFA Level II — Equity Valuation Practice Question | AcadiFi | AcadiFi