z Inc. has no debt right now. You project that this company can generate EBIT of 10 million per year for the next few years. There is no depreciation. You plan to attempt a leveraged buyout of this company. Your plan is to operate the company for three years and sell the company then you think the company can be sold at price to EBIT ratio of three years from now you plan to borrow 65 million in three year interest only Joan and putting 15 millions of your own equity to buy the company. (Note that the loan interest only and you do not plan to retire any debe before you sell the company. Your interest payment will remain the same for the three years. The interest rate on the loan is 10% and the tarate 15 4096 Pre selling price of the company in three years is 80 million De meest expense of the company in the first year is 2.1 million The cash flow to the equity investor in the first year is 17.1 million The rate of turn to the equity investor for this deal is