In a typical LBO scenario, we calculate total free cash flow normally. Even after taking out the after$-$tax interest expense, it's not likely that the equity holders get any of the remaining cash. Why is that?

Question $8$ options:

Because there's usually a cash sweep in place that gives all cash to the debt holders until they are paid off.

Because the interest payments are so large that there isn't any cash left over.

Because the equity holders plow the remaining cash back into the firm to grow it faster and realize a higher return.

Because the interest payments are not tax$-$deductible for a private firm.

None of the above are true.