1. In addition to the $150 million purchase price for Kappas equity, $4.5 million will be used to repay Kappas existing debt.

2. With $5 million in transaction fees, the acquisition will require $159.5 million in total funds.

3. The Blackstone Groups sources of funds include the new loan of $100 million as well as $ 6.5 million Kappas own excess cash (which The Blackstone Group will have access to).

4. Thus The Blackstone Groups required equity contribution to the transaction is $53 million.

Exercise 15: how do you get $53 million?