I am making a financial model and having a hard time understanding how dividend payments work. In the model, I am assuming that: - 20% is my own equity 70% is bank debt 10% is owner equity In this case, how would I split dividends amongst myself and the current owner? Will the current owner get 10% of dividends or would it be 33% of dividends (since there is 30% equity, 70% bank debt)

33%, bank debt doesn’t get dividends

How do Dividend Payments work in LBO?

I am making a financial model and having a hard time understanding how dividend payments work.

In the model, I am assuming that:
- 20% is my own equity

70% is bank debt
10% is owner equity

In this case, how would I split dividends amongst myself and the current owner?
Will the current owner get 10% of dividends or would it be 33% of dividends (since there is 30% equity, 70% bank debt)

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How do Dividend Payments work in LBO?

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