We now have to model the remaining items on the debt page, which are the mezzanine and the preference shares. For the mezzanine, we will begin by going back to our combo balance sheet and picking up the mezzanine as of the combo year. We will bring that to the beginning balance. And now we have no repayment here. We have no acceleration here. That can technically happen with mezzanine. You can accelerate. It gets a little bit tricky with senior levels of debt. However, in this model, we are going to assume that the only thing that happens to mezzanine is that it will accrue in value based on the PIK interest. So we have to calculate the PIK interest, and that's going to be a formula similar to what we did in the previous tranches of debt. We're going to say =if, on our LBO page, J41, and we'll anchor that, is equal to N/A then will be 0. And if it's not equal to N/A, then we will take the rate itself, anchor it, and multiply it by the beginning balance.

And that's typically how mezzanine is calculated on the beginning balance. Now the interest is going to remain positive in this case. It's not a cash flow, so it's not going to come out of our cash flow. It will be part of our interest calculation and it is tax deductible. But because it's accruing in value to the beginning balance, we're gonna keep it as positive. And then we'll just have to remember when we go and we tally up the interest that we have to flip it to a negative. So the next thing we'll do is we'll calculate the preference shares. We'll get that from the same place, which is the combo of the balance sheet page. And then that's going to become our beginning balance. And then for the accrued dividends, it's going to work the same way except the interest rate, if we go and look at our debt page, we haven't calculated this yet, the interest rate is not changing in any of the three scenarios. So technically this could just be direct link of some sort. So what we'll do is we'll just build a choose function again. And the choose function is going to be based on this toggle.

And then our first choice will be the standard. The second will be the unitranche, and the third will be the sale leaseback. And technically I should anchor these, even though we're not going to copy this anywhere. And that gives us the rate that we need for the preference dividend. Going back now to the debt page, I can link to that. And now I don't need to model in the functionality of if it's N/A or not, because it's always going to be 12% in any of the three scenarios. So I can simply go ahead and link to that LBO page, link to my preference, anchor it, and multiply it by the beginning balance as I did with the mezzanine. And this is the same thing. Now the accrued dividend, obviously, is not gonna be part of the interest expense, because it is in fact a dividend and not interest. But it is going to be added to the beginning balance of our total, so we're gonna keep it as positive.