And work out for we have to calculate the expected cash flow to the equity holders in year one of the above clo so we'll just go and take a look at the CLL in question here. This is the one in workout 2. So we've already calculated the weighted average return and the weighted average cost of the liabilities. So now we need to calculate what the with the actual cash flow will be to the equity holders. So the first thing we'll do here just as a recap as we'll go up and we'll get the total debt in this.

Clo which is the sum of the various tranches of debt.

The equity investment is the 23. So the total Capital invested here is the 400 million the excess spread we calculated in the last problem. And that was the 1.79 percent. The return to equity is going to be calculated by applying the excess spread to the total debt. Not just the equity component because it is the debt that actually generates the axis spread. So we'll take the 1.79% and apply it to the three 77 of debt financing and that gives us the 6.8 million of cash flow to the equity holders.