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Consider the following sources and uses of funds: Sources of Funds (A$ millions) Excess cash of Balance Sheet Senior Debt Sub Debt Issue of New
Consider the following sources and uses of funds: Sources of Funds (A$ millions) Excess cash of Balance Sheet Senior Debt Sub Debt Issue of New Equity TOTAL SOURCES OF FUNDS Select one: 120 O a. A$200 million O b. A$400 million O c. A$600 million d. A$820 million Oe. A$620 million Uses of Funds (A$ millions) Cash consideration Stock consideration Takeout of existing Target debt Transaction Costs TOTAL USES OF FUNDS XXX 400 200 The EBITDA of the target company is $200 million and the bidder is able to raise senior debt at 2.5x the target's EBITDA and sub-debt at 1x the target's EBITDA. Based on the information contained in the sources and uses of funds, how much does the bidder use to fund the cash consideration for the bid (XXX)? 20
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