A target was purchased for $1,500.0m with an equity contribution of $500.0m.By year 5 no debt has been repaid and enterprise value has grown by $500.0m.Assuming the sponsor sells the target for its enterprise value, what is the sponsor's cash return?
A) 2x
B) 3x
C) 1x
D) 5x
Correct Answer:
Verified
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