You have just completed your LBO model for a potential transaction, and realize your final projected returns for the Financial sponsor are too low. Which of the mistakes below may be causing problems in your model?

1. You included Dividend payments in your Return calculation
2. You did not add back Stock based compensation to Net Income for Cash from operating activities
3. You allowed debt to be repaid with Excess cash before paying Equity holders
4. Your EV/EBITDA Exit multiple is too high
5. You treated increases in net working capital as a cash inflow