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Show all work. Label and clearly explain your answer. This is very important. 1) You must explain how you arrived at your answer to get

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Show all work. Label and clearly explain your answer. This is very important. 1) You must explain how you arrived at your answer to get full credit. 2) If you do show your work, and your answer is wrong, you can still earn a substantial amount of credit depending on how serious the error is. 3) If your answer is wrong, and you do not show your work, you will get a zero. The partners at Mopari consider the acquisition of ABC Inc. through a leveraged buyout. ABC's projected EBITDA for next year is $100 million and the expected growth rate over the next 5 years is 5% per year. An MD at MoPari has determined that the debt capacity of ABC is 4.4x EBITDA. The financing structure assumes full amortization of senior debt (35% of debt capital) in 5 years. The deal-related expenses are $2 million. What is the affordable price if MoPari requires 30% rate of return and expects an exit in 5 years at an EBITDA multiple of 5.0x? Show a table with Sources and Uses of funds. Hints! Quiz 6 question is the more straightforward question compared to the examples in the lecture notes. 1. For the first question, please use the following relationship, "Affordable price (purchase price or offer price) = Total - Expenses." 2. Please fill in the blanks in the table for Sources and Uses of funds. Sources Senior Debt Sub Debt Equity Total Uses Purchase Price Expenses Total

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