Paper LBO

Hi all, I have an interview soon for a intern position at a MF. I was told to have pen and paper ready, so I'm expecting a paper LBO.

Two questions:

1. Interest shortcut. To save time and avoid carry-forward mistakes, is it acceptable to calculate interest on the initial debt balance each year (fixed), and get exit debt as initial debt minus the sum of all FCF? I'd state it out loud as a conservative simplification. Is this generally fine, or do interviewers expect interest on the declining balance year by year?

2. Complexity. For a trainee/intern-level paper LBO, how complex do they usually get? Specifically, should I expect:

• Dividend recaps mid-hold, and how IRR is handled with the interim cash flow
• Reverse calculations, i.e. what entry price/equity to pay to hit a target MOIC or IRR
• Multiple debt tranches with mandatory amortization and a cash sweep
• Minimum cash, PIK, or management rollover

Or is that more associate level?

Also, could i get other cases aside from a Paper LBO? I already did math exams and stuff in previous rounds

Thanks