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Structure #2 Acquisition Price $10 million 100% Equity Financing At the end of 10 years, the owner of the business sells the business for $10

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Structure #2 Acquisition Price $10 million 100% Equity Financing At the end of 10 years, the owner of the business sells the business for $10 million. How much money will the $10 million Equity Investment earn on a pre-tax and after pre-tax basis? Tips-Industry Sector Earnings before interest and taxes = $2mm a year for the next 10 years. Taxes are 40%

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