4.

4. You are gived the following takit ahonulaz the end nf yed ner debe for a tares firan. The cost of senior delet is 7.6 pertient the onet of yubotdinsted Lebt is 8.9 perocnt and the the threc-year period. 25 PIs 5. An L.BO transaction requares that a vabeetisated dete lender provides capltal in the amount of 5330 mialion. The lender repuises cash interett of 4 in per year finterest paid annaally) and will exit at time t - 7. In adtision, the lender requires an equity kicluet to bring the IRR of his iavestmeat to 22 : . Assuming that the lender will be pasid the free value of the sabordinated debt at=7 in the amount of $3,30 miltion, calculate the requed equity kicker