Now let's build our sources and uses of funds, but before we can build it, we need to get some assumptions from our handout as well as some live data from Felix. So let's start with the fees as a percentage of acquisition enterprise value. We can find that on the handout. And if we read here it says deal fees are 2% of enterprise value. So let's go back and type 2%. Now for the software and the tax rate, we can get both of these data points from Felix. So let's go back to Felix. And you will see here on the company page on the top left, you have software at 4.28% and the marginal tax rate is the first item at 24.7%. So let's go back to our template and type 4.28% fr 24.7% for the tax rate. Now we need information on both the junior and senior interest rates, and these are provided in the handout. You can see here that it says the cost of senior debt is FR plus 200 basis points and the cost of junior debt is software plus 400 basis points. So we can enter that information in our template. For the senior debt, I am gonna take software and I'm gonna add 200 basis points, which means I take 200 and I divide it by 10,000 to convert it into a percentage number for our junior debt. Again, so far this time I add 400 basis points over 10,000, which gives us 8.3% for the junior debt and 6.3% for our senior debt. Now for the rest of the assumptions, except for the one on line 38, we have to make our own assumptions. So first, let me get the maximum debt to EBITDA, which on the handout is provided at five x, but now we have to work out what the senior debt to EBITDA will be, and of course then what the junior debt to EBITDA will be. Now, typically, especially in the consumer space, senior debt will be at most about 3.5 times the total debt. So let's use 3.5 times as our leverage for senior debt, and that means that my junior debt will be the difference between the five and the 3.5. So now we have left an assumption about exit year. Now here you could have three, four, or five years out as your assumption. In fact, you could build a sensitivity analysis around the potential exit year From this LBO investment. But I'm gonna use year three as my base case assumption. And finally, we need to assume an exit enterprise value to EBITDA multiple. Now, as per the handout, it says to assume an exit multiple that is equal to the entry, multiple entry. So what I can do is simply calculate the entry multiple in this cell. I'm gonna take the acquisition enterprise value of 5.9 billion and I'm gonna divide it by LTM earnings, which is all the way at the top at 5 38 0.5. Now that gives me an entry multiple of 11 times, which here I am setting equal to the exit multiple. Now we are ready to build out our sources and uses of funds. So let's scroll down and let's start with our acquisition enterprise value in our uses of funds. I can simply link that to the calculation at the top.

And of course, another use of funds will be the fees, which remember is 2% of enterprise value. So the total uses of funds will be around 6 billion. Now let's work on our sources of funds, starting with our senior debt. And senior debt will be 3.5 times LTM ebitda. So I'm gonna go all the way up and find my LTM EBITDA of 5 38 0.5. That gives me about 1.9 billion. And my junior debt will be 1.5 times the same LTM EBITDA of 5 38 0.5.

Now of course, that would not be enough to cover the entire uses of funds total, but we have common equity and that's gonna be our balancing figure. So I'm gonna calculate common equity as the difference between the total uses of funds and all of the debt that we've put in place. So I will take the senior debt out and the junior debt out to arrive at a common equity financing of about 3.3, 3.4 billion. Now I can take all of my numbers and add a map to get my total sources of funds.