ABC Co. Ltd. is planning to acquire XYZ Co. Ltd. Following are the balance-sheet of both companies for year 2022-23:

If ABC Ltd. does not want its debt-equity ratio to be more than 1:3 and they need to pay off XYZ Ltd.s shareholder bi-annually in next five years, would you recommend them to use leveraged buyout if company can acquire loan @7% p.a.? (Kindly show answer in excel and state necessary assumptions, if any).

Particulars		XYZ	ABC	Particulars	XYZ	ABC
Fixed Assets		0	200000	6% Debenture	1800000	0
Cash		1,19,115	15,00,000	Out. Salaries	10,000	3,575
Accounts receivable		1,62,500	1,00,000	Accumulated Depreciation	2,50,000	48,050
Store equipment		2,15,000	0	Accounts payable	60,000	1,18,180
Prepaid insurance		38,250	50,000	Notes payable	70,000	1,46,730
Closing supplies		5250	0	Common stock	17,50,000	3,00,000
Closing inventory		3,84,690	38,88,800	RE	17,98,800	3,08,680
Accrued interest		410	0
		9,25,215	57,38,800		57,38,800	9,25,215