1. You are considering buying a company using leveraged buyout. The company is projected to have sales of 600 million each year in the three years after buyout. The cost of sales and other administrative expenses are 60% of the sale. Depreciation and amortization are 5% of the sale. Tax rate is 40%. Change in net working capital runs at 2% of the revenue, and capital expenditure is 3% of the revenue. If you borrow 1.5 billion at interest rate of 8% per year and you use all the cash flow to repay debt. a. What is the EBITDA in the first year after the buyout? b. What is the interest expense in the first year after the buyout? c. What is the net income in the first year after the buyout? d. How much debt can you retire in the first year? e. How much debt can you retire in the second year