Question 5 (10 points) How long will it take for the Company ABC to reduce its leverage to below 2x assuming the following information Revenue growth 20 Capital expenditure, dividends and interest are fixed costs Sales Gross Profit Oerating Income EBITDA CAPEX Interest Dividends Free Cash Flow Available to Service Debt Total Debt Leverage 2020 1,000,000 300,000 0 200,000 0 100,000 0 50,000 0 10,000 0 5,000 35,000 0 500,000 0 5

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Question: Question 5 (10 points) How long will it take for the Company ABC to reduce its leverage to below 2x assuming the following information: Revenue

Question 5 (10 points)

How long will it take for the Company ABC to reduce its leverage to below 2x assuming the following information:

Question 5 (10 points) How long will it take for the Company

Revenue growth 20%
Capital expenditure, dividends and interest are fixed costs

Sales Gross Profit Oerating Income EBITDA CAPEX Interest Dividends Free Cash Flow Available to Service Debt Total Debt Leverage 2020 1,000,000 300,000.0 200,000.0 100,000.0 50,000.0 10,000.0 5,000 35,000.0 500,000.0 5

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