Profit taking, page-48

Assuming 4:1 debt:equity ratio & their current 12x/year lending rate, and not taking into consideration current equity levels,

Let's look at scenarios of different capital raisings:

	Capital raised	Possible debt leverage (capital x 4)	Total Afterpay funding available	GMV funding ability ( x 12)
1	$200 million	$800 million	$1 billion	$12 billion
2	$400 million	$1.6 billion	$2 billion	$24 billion
3	$500 million	$2 billion	$2.5 billion	$30 billion
4	$1 billion	$4 billion	$5 billion	$60 billion
5	$2 billion	$8 billion	$10 billion	$120 billion
6	$3 billion	$12 billion	$15 billion	$180 billion
7	$4 billion	$16 billion	$20 billion	$240 billion

Based on the above you can see they won't need more than ~$400 million equity to fund $20 billion GMV. And looking at their equity position they have $340 million balance sheet equity, or $230 million if you take out non-current assets & intangibles. With that $230 mil they can already borrow $920 million on top without raising capital, and fund $14 billion in annualised sales. And that's exactly what they're doing, they have $520 million in A&NZ facilities and are getting another $420 million US facility. This will give them > $10 billion annualised sales funding capacity. They could do another raise of $200 million right now if they wanted to to cover themselves for $20 billion GMV and dilution would be ~3-4%.