In this workout, we're going to look at a more detailed debt capacity and structuring exercise. On the left hand side in the deal terms, we have the terms of the deal. We have an EV multiple of 10x, LTM or trailing EBITDA of 100. So the acquisition price of this deal is going to be 10 times the 100 or 1,000. We're also given the maximum leverage of the overall deal as well as the maximum senior debt leverage both relative to EBITDA. On the right hand side, we have the detail of the debt that is to be employed in the deal. We have at the top the term loan B, which is in this case the top of the capital structure, the senior debt. We also have the senior notes or bonds underneath it, and then we have the mezzanine, which will be the junior debt making up any difference. We have the terms of these instruments to the right. Now, we're not really going to get into these terms. These would be employed in the more detailed part of the model that would be on other tabs, but we're showing them here just to be realistic. You can see how the pricing of these different types of loans are are different. You can see how the interest is different in terms of cash versus PIK and how the loans amortize and over their terms. Now again, we're not gonna get into those details, but just so that you can kind of understand them in context. I'm going to increase the zoom here just so we can see the sources and uses a little bit. Because that is where we're going to be focusing our time. What we wanna do is we want to see how these leverage multiples impact the ability to apply the different types of debt to the capital structure. Now what we're funding here is the purchase price and that's the 1000. So my total uses of funds is the 1000 of the purchase price of the company. In terms of how I can apply this, well, I know from my table to the right that the maximum amount of leverage I can put in the term loan B is 3.5 times EBITDA. So I'm going to apply the 3.5x times the 100 of EBITDA. Now the total senior debt in this deal is five and a half times. So three and a half of that is already the term loan B. So what I need to do is take the five and a half and back out the three and a half and that leaves me with 2x and that 2x I can now apply to the EBITDA of 100, and that's gonna help me fill in the amount that I can get in the bond market. The remaining bit of debt under the total leverage multiple of 6x, that's going to go to the junior or the mezzanine. And the easiest way to do that is to take the max leverage of 6x and back out the max senior debt of 5.5. That's gonna tell me what is available for the junior debt, in this case, the mezzanine, and that equals 50. Now the equity investment is going to be whatever the debt cannot provide. So I'm gonna take my total uses and I'm gonna subtract the sum of the three tranches of debt that I have, and that's going to give me the equity investment. Sometimes this is called the equity check, and if I add these three up, we can see that my total sources matches my total uses. I'm just gonna put the formulas out here to the right. They are in the solution file as well, so you can always check them there. And we have built the sources and uses table using the debt capacity constraints that were given to us for the deal.