In this workout, we're asked to calculate the total distributable value, value per share, and the multiple of money in each scenario. So we've got three scenarios where we're going to exit this company. We could exit at a MOIC of 1.25, 2 or 3.

Let's look at this first interesting line item here says exit proceeds from the sale of Target co. So we've owned Target Co for a couple of years now. We're looking to sell it on and in scenario A, we sell it for 14,000. That's above the MOIC hurdle of 1.25. In Scenario B, we sell it for 24,000, which is above that MOIC of 2 and similar in C.

So to work out our distributable value, the big number to include is the exit proceeds. Great. We sell it for 14,000. We get to distribute that to our shareholders, but there's another number that we get to distribute out as well, and it's the option proceeds received from management.

Now that we're selling, the company management received their options, but they have to pay a bit of money for those. So they exercise their options and the proceeds received were 255.1. So the total distributable value, 14,255.1.

Let's now distribute that amongst the various shareholders. We've got management having a basic 2.5 shares, the PE fund having 97.5, but we've also got 2 extra shares as a result of the management A options. So the total shares included in this scenario, if we sum them up, come to 102.

So my diluted equity value per share is the distributable value divided by the total number of shares, 139.7. Great. Let's work out the multiple of money here. Well, we've come out with a share worth 139.7. I'm going to divide that by the entry share price, which was 100, and I'll lock onto that.

If I copy all of these numbers to the right. Let's look at what's happens.

The total distributable value goes up dramatically as we see the exit proceeds going up and the option proceeds received from management went up as well. But we also saw the shares go up as well. These shares increase as the number of shares going to management options go up as well.

The great news is that the diluted equity value per share, again, dramatically goes up and our multiple of money increases as well. So the big driver of all of this is the exit proceeds from the sale of the target company, but we then have the management incentive over the options playing apart, but the options also increase the number of shares as well.