market yield on such debt. b Junior funds in the amount of $15 million with a coupon rate of 5%. The market rate for such investment is 18%. The junior investors will also receive an equity kicker to make up the short fall in the coupon rate. Outside equity investors will supply $10 million and require an annual rate of 60%. No dividends will paid prior to exit. d Ms. Boucher will retain the remaining equity. Additionally assume the following: . Exit in year 3 will take place at an EBIDTA multiple of 5 without the cash balance. Interest rate on cash balances is 0% Depreciation CAPEX for all years. NWC = 0 for all years. Tax rate = 40% It was agreed that the exit would occur in year 3 at a value of 5 year 3 EBIDTA. The following is the 3-year forecasts: Year Revenue 1 2 3 62.42 75.41 85.81 EBIDTA 8.74 15.44 17.35 Depreciation 0.62 0.67 0.73 Assignment question: If the total number of common equity shares issued at the beginning of the LBO is 1,000, what is the number of shares issued to each of the equity investors?