5% Revenue growth per year in each of the next five years and improve the operating margin to 12%	DPC value goes from $3,970 to $4,859, which is an increase of $889 million.
Assume part a and that the division can be sold at 7.5 x EBITDA in five years (continue to use exhibit 9 for your calculations simply adjust the TV)	DPC value goes from $4,859 million to $5,102 million, which is an increase of $243 million.
Assume part a and b and that debt financing equal to 6x forward EBITDA (yr1) can be obtained Begin by estimating total Debt Balance off 2012E EBITDA (input that into cell D21) Calculate interest expense per year and include in the model (row 31) Assume the residual cash flows are used to pay down the debt balance each year (update debt balance in row 21) Hint- each year should have a different interest expense as your debt is paid down over the holding period Calculate the PV of the tax shield and include that in the model	Total debt balance off is $3,926 Interest expense per year is $265 Shown on Excel Calculated PV of tax shield as $210 million

5. If a PE sponsor has a target return of 20% on its funds (i.e. their equity contribution), what is the maximum affordable price it can offer DPC (assuming all the assumptions are held from Question 4)?

6. Assume that a PE firm purchases DPC for $4,800 million, what is the resulting IRR for the PE firm? Assume the same set of assumptions in Question 4.