LBO MODELING EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED RATED A++
Levered FCF
Net Income +/- Non-Cash Items +/- Changes in Working Capital - CapEx
Calc:
EBITDA
- (D&A)
= EBIT
- (Interest)
= EBT
- (Taxes)
= Net Income
+ (D&A)
- (CapEx)
- (Changes in NWC)
= LFCF
bullet maturity
when the entire loan matures at a specific date in the future; principal is due at end of
lifespan
straight line amortization
principal must be repaid in equal installments until the loan fully matures
COMPLETE SOLUTIONS VERIFIED RATED A++
Levered FCF
Net Income +/- Non-Cash Items +/- Changes in Working Capital - CapEx
Calc:
EBITDA
- (D&A)
= EBIT
- (Interest)
= EBT
- (Taxes)
= Net Income
+ (D&A)
- (CapEx)
- (Changes in NWC)
= LFCF
bullet maturity
when the entire loan matures at a specific date in the future; principal is due at end of
lifespan
straight line amortization
principal must be repaid in equal installments until the loan fully matures
