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The Company, Rolling Stock, generated in the last quarter EUR
50m of net income, which is supposed to grow gradually by 5% on annual basis. The Company is supposed to pay dividend quarterly with 30% pay-out ratio. MC Capital Partners wants to make an investment in Rolling Stock with 5 year time horizon. The fund intends to acquire 20% stake and assumes that it will exit the Company selling its stake at 10x P/E multiple based on LTM results. What is the maximum consideration which MC Capital Partners could pay in order to achieve 10% IRR on investment? A. EUR 487m B. EUR 369m C. EUR 364m D. EUR 688m |
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