LBO, Other Valuation Methods, and Financing Strategy
Free FINRA Series 79 (Investment Banking Representative) lesson in Collection, Analysis and Evaluation of Data. 22 min read, ~3,325 words.
DDM values a stock as the present value of future dividends; the Gordon growth form is D1 divided by (r minus g). An LBO sets a valuation floor: it solves for the price a financial sponsor can pay to hit a target IRR at a given entry multiple and leverage...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A9
- A10
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