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. How much debt is needed to finance this acquisition? Calculate interest coverage at the end of year one given the new debt which was raised. In other words, use your answer from #20 to calculate this ratio. Assume the company is sold at the end of year 4 for the same 7x multiple. What is the equity return assuming no debt is paid down ? Use the information below to answer questions 26-27. Revenues. EBITDA Debt Rent Yr.1. 2000 800 1650 200 YRA 2300 900 1400 200 Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. Assume the company was purchased for a 7x multiple at the end of year 1. financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be?