In the tab Problen $4,$ you will find numerical assumptions for forecasting the financials of The Plumber Slow Co$.$ from Years $1$ through $5.$ In addition to these assumptions, some numbers have been provided for Year $0,$ along with the following facts.

The company has a strict policy of not maintaining any excess cash balances in any year. Therefore, all cash is required cash.

The company does not have any preferred stock.

During years $1$ through $5,$ the company does not plan to raise any equity capital by issuing new common stock. No repurchases of common stock are planned.

Yearly interest expense is calculated on the debt balance at the beginning of the year $($i$.$e$.,$ ending debt balance of the last year$).$

The interest rate on debt offered by lenders each year depends on the interest coverage ratio $($which is defined as ICR$=\frac{EBr}{\text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}})$ at the end of the previous year according to the following table.

$\backslash$table$[[$Interest coverage ratio ICR $($Year t$-1),$Interest rate $($Year t$)],[$ICR $7,10\%$