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23. please show work 1 2 3 4 Revenues 700 750 800 900 COGS 380 425 460 530 SG&A 100 110 120 125 Depreciation 50

23. please show work
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1 2 3 4 Revenues 700 750 800 900 COGS 380 425 460 530 SG&A 100 110 120 125 Depreciation 50 50 50 50 Operating Income 170 165 170 195 An equity sponsor is looking to buy the above company at the end of year 1 for a 7x multiple. The equity sponsor will put in $1,100 of equity. 23. How much debt is needed to finance this acquisition? After you find that, calculate interest coverage at the end of year one given the new debt which was raised

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