financial modeling chapter 2

8/13/2019 financial modeling chapter 2

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A B C

Current share price, P0 60

Current dividend, D0 3

Anticipated dividend growth rate 12%

Gordon model cost of equity, rE 17.60%


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A B C

Dividend growth rate, quarterly last 5 years 0.47%


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Kellogg stock price, P0, 30 May 2006 48.28

Current dividend Quarterly 0.278

Annualized dividend, Div 0 1.112


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Year ending DividendsRepurchase of

common stockStock issues

31-Dec-95 827,000,000 322,000,000 -112,000,00031-Dec-96 974,000,000 412,000,000 -149,000,000

31-Dec-97 1,137,000,000 628,000,000 -225,000,00031-Dec-98 1,305,000,000 930,000,000 -269,000,00031-Dec-99 1,479,000,000 840,000,000 -221,000,00031-Dec-00 1,724,000,000 973,000,000 -387,000,00031-Dec-01 2,047,000,000 2,570,000,000 -514,000,00031-Dec-02 2,381,000,000 6,538,000,000 -390,000,00031-Dec-03 2,746,000,000 1,183,000,000 -311,000,00031-Dec-04 3,251,000,000 1,384,000,000 -642,000,00031-Dec-05 3,793,000,000 1,717,000,000 -696,000,000

End 2005 equity dataStock price 61.07Number of shares 3,119,842,000Equity value 190,528,750,940


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A B C D


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E F G H I J K L

Cash flow to

equity

Year on year

growth

1,037,000,000


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M N

005


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JNJ's stock price, P0,31 Dec 2005 61.07

Current dividend

Quarterly 0.33


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A B

Current dividend, Div0 8.00

Growth rate g1, years 1-m ("supernormal") 35%

Growth rate g2, years 6 - 8%

Number of supernormal growth years, m 5Cost of equity 18%

Dividend valuationPV of supernormal growth years Using Excel NPV 60.99

Check: Using book formula 60.99PV of normal growth years, after year 5 169.35Share value 230.33

Year

Anticipated

dividend

1 10.802 14.583 19.68

4 26.575 35.876 38.747 41.848 45.199 48.8010 52.7111 56.9212 61.48etc. etc.

THE GORDON MODEL


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A B C D E

Commonstock issued

Total Dividendpayments

Common

stockrepurchased

Total equitycash flow

1991 16,462,000 150,730,000 1,215,000 135,483,0001992 29,717,000 170,756,000 31,197,000 172,236,000

1993 24,961,000 191,488,000 98,804,000 265,331,0001994 25,339,000 210,503,000 52,908,000 238,072,0001995 24,115,000 235,495,000 65,032,000 276,412,0001996 25,826,000 254,458,000 376,716,000 605,348,0001997 59,281,000 327,303,000 532,682,000 800,704,0001998 80,375,000 381,798,000 531,122,000 832,545,0001999 59,478,000 418,447,000 634,623,000 993,592,000

Compound growth rate 17.42% 13.61% 118.65% 28.28%

End 1999 stock price 68.00

Number of sharesoutstanding, end 1999 202,795,000

Future dividend growth, g? 28.28%


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A B C D E

1999 1998 1997 1996Common stock issued 59,478,000 80,375,000 59,281,000 25,826,000

Dividend payments 418,447,000 381,798,000 327,303,000 254,458,000Common stock repurchased 634,623,000 531,122,000 532,682,000 376,716,000Total equity payout 1,112,548,000 993,295,000 919,266,000 657,000,000

Number of sharesoutstandingend of year 202,795,000 205,058,000 198,290,000 167,255,000

Dividends per share 2.06 1.86 1.65 1.52


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F G H


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F G H

1994 1993 199225,339,000 24,961,000 29,717,000

210,503,000 191,488,000 170,756,00052,908,000 98,804,000 31,197,000288,750,000 315,253,000 231,670,000

172,339,000 172,273,000 170,763,000

1.22 1.11 1.00


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I

199116,462,000

150,730,0001,215,000168,407,000

169,841,000

0.89


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End-1999 equity value, P0 13,790,060,000

End 1999 total equity payout 993,592,000

High growth rate, ghigh 28.28%Number of high-growth years, m 3

Normal growth rate, gnormal 4%

Cost of equity, rEusing the function TwoStageGordon 17.251%


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A B C D E F

Alpha -0.0029


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G

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585960616263646566

6768697071

A B C D E F G H

1-Apr-04 24.88 1107.30 -5.55% -1.69%3-May-04 27.64 1120.68 10.52% 1.20%1-Jun-04 26.72 1140.84 -3.39% 1.78%1-Jul-04 23.61 1101.72 -12.37% -3.49%

2-Aug-04 20.65 1104.24 -13.40% 0.23%

1-Sep-04 19.46 1114.58 -5.94% 0.93%1-Oct-04 21.59 1130.20 10.39% 1.39%1-Nov-04 21.74 1173.82 0.69% 3.79%

1-Dec-04 22.73 1211.92 4.45% 3.19%3-Jan-05 21.81 1181.27 -4.13% -2.56%1-Feb-05 23.39 1203.60 6.99% 1.87%1-Mar-05 22.65 1180.59 -3.21% -1.93%1-Apr-05 22.93 1156.85 1.23% -2.03%

2-May-05 26.38 1191.50 14.02% 2.95%1-Jun-05 25.46 1191.33 -3.55% -0.01%1-Jul-05 26.55 1234.18 4.19% 3.53%

1-Aug-05 25.24 1220.33 -5.06% -1.13%

1-Sep-05 24.19 1228.81 -4.25% 0.69%3-Oct-05 23.06 1207.01 -4.78% -1.79%1-Nov-05 26.27 1249.48 13.03% 3.46%1-Dec-05 24.57 1248.29 -6.69% -0.10%3-Jan-06 25.90 1285.45 5.27% 2.93%


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Slope InterceptSlope --> 2.2516 -0.0029 0.2782 0.0120 0.5304 0.0927 65.5155 58.0000 0.5627 0.4982


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166566

6768697071727374

75

7677787980

8182

83848586

87

888990

A B C D E F G

Alpha -0.0029


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A B C

Intel beta 2.2516

Risk free rate, rf 4.93%Expected market return, E(rM) 9.98%

Intel cost of equity, rE,Intel 16.31%


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INTEL CORP 10-K 2005-12-31: Income Statement

2005/12/31 2004/12/31Net revenue $38,826,000,000 $34,209,000,000Cost of sales $15,777,000,000 $14,463,000,000Gross margin $23,049,000,000 $19,746,000,000Research and development $5,145,000,000 $4,778,000,000Marketing, general and administrative $5,688,000,000 $4,659,000,000Impairment of goodwill $0 $0Amortization and impairment of acquisition-related $126,000,000 $179,000,000intangibles and costsPurchased in-process research and development $0 $0Operating expenses $10,959,000,000 $9,616,000,000Operating income $12,090,000,000 $10,130,000,000

Losses on equity securities, net ($45,000,000) ($2,000,000)Interest and other, net $565,000,000 $289,000,000Income before taxes $12,610,000,000 $10,417,000,000Provision for taxes $3,946,000,000 $2,901,000,000

Net income $8,664,000,000 $7,516,000,000Basic earnings per common share $1,420,000 $1,170,000Diluted earnings per common share $1,400,000 $1,160,000Weighted average common shares outstanding $6,106,000,000 $6,400,000,000Weighted average common shares outstanding, assumi $6,178,000,000 $6,494,000,000

dilution

Tax rate 31.29% 27.85%

This data was extracted by EdgarScan from the PricewaterhouseCoopers Global Technology C

Please read the on-line disclaimer at http://edgarscan.pwcglobal.com/EdgarScan/edgarscan_di

COMPUTING INTEL'S TAX RATE


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2003/12/31$30,141,000,000$13,047,000,000$17,094,000,000$4,360,000,000$4,278,000,000

$617,000,000$301,000,000

$5,000,000$9,561,000,000$7,533,000,000

($283,000,000)$192,000,000

$7,442,000,000$1,801,000,000

$5,641,000,000$860,000$850,000

$6,527,000,000$6,621,000,000

24.20%

entre.

sclaimer.html


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Intel beta 2.2516

Intel tax rate, TC 31.29%


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373839

404142434445

A B C D

Average monthly return 0.83%


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63646566676869707172

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767778798081828384

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888990919293

949596

A B C D

1-May-90 23.95 9.22%1-Jun-90 23.79 -0.67%2-Jul-90 23.71 -0.34%1-Aug-90 21.57 -9.46%4-Sep-90 20.51 -5.04%

1-Oct-90 20.43 -0.39%1-Nov-90 21.74 6.21%3-Dec-90 22.33 2.68%

2-Jan-91 23.30 4.25%1-Feb-91 24.96 6.88%1-Mar-91 25.56 2.38%1-Apr-91 25.61 0.20%1-May-91 26.70 4.17%3-Jun-91 25.49 -4.64%1-Jul-91 26.67 4.53%1-Aug-91 27.29 2.30%3-Sep-91 26.83 -1.70%

1-Oct-91 27.19 1.33%1-Nov-91 26.10 -4.09%2-Dec-91 29.07 10.78%2-Jan-92 28.53 -1.88%3-Feb-92 28.89 1.25%2-Mar-92 28.33 -1.96%1-Apr-92 29.16 2.89%1-May-92 29.30 0.48%1-Jun-92 28.86 -1.51%1-Jul-92 30.03 3.97%

3-Aug-92 29.41 -2.09%1-Sep-92 29.75 1.15%1-Oct-92 29.85 0.34%

2-Nov-92 30.87 3.36%1-Dec-92 31.46 1.89%4-Jan-93 31.49 0.10%1-Feb-93 31.92 1.36%1-Mar-93 32.59 2.08%1-Apr-93 31.80 -2.45%3-May-93 32.64 2.61%1-Jun-93 32.73 0.28%1-Jul-93 32.59 -0.43%

2-Aug-93 33.82 3.70%1-Sep-93 33.56 -0.77%1-Oct-93 34.25 2.04%

1-Nov-93 33.91 -1.00%1-Dec-93 34.33 1.23%3-Jan-94 35.49 3.32%1-Feb-94 34.52 -2.77%1-Mar-94 33.01 -4.47%4-Apr-94 33.44 1.29%

2-May-94 33.97 1.57%1-Jun-94 33.14 -2.47%1-Jul-94 34.23 3.24%


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145146147

A B C D

1-Aug-94 35.62 3.98%1-Sep-94 34.75 -2.47%3-Oct-94 35.53 2.22%1-Nov-94 34.23 -3.73%1-Dec-94 34.73 1.45%

3-Jan-95 35.63 2.56%1-Feb-95 37.01 3.80%1-Mar-95 38.10 2.90%

3-Apr-95 39.22 2.90%1-May-95 40.78 3.90%1-Jun-95 41.72 2.28%3-Jul-95 43.10 3.25%1-Aug-95 43.21 0.25%1-Sep-95 45.03 4.13%2-Oct-95 44.87 -0.36%1-Nov-95 46.83 4.28%1-Dec-95 47.74 1.92%

2-Jan-96 49.35 3.32%1-Feb-96 49.81 0.93%1-Mar-96 50.30 0.98%1-Apr-96 51.03 1.44%1-May-96 52.33 2.52%3-Jun-96 52.53 0.38%1-Jul-96 50.21 -4.52%1-Aug-96 51.26 2.07%3-Sep-96 54.13 5.45%1-Oct-96 55.62 2.72%

1-Nov-96 59.83 7.30%2-Dec-96 58.65 -1.99%2-Jan-97 62.31 6.05%

3-Feb-97 62.80 0.78%3-Mar-97 60.20 -4.23%1-Apr-97 63.79 5.79%1-May-97 67.67 5.90%2-Jun-97 70.68 4.35%1-Jul-97 76.31 7.66%1-Aug-97 72.03 -5.77%2-Sep-97 75.97 5.33%1-Oct-97 73.43 -3.40%

3-Nov-97 76.80 4.49%1-Dec-97 78.11 1.69%2-Jan-98 78.98 1.11%

2-Feb-98 84.66 6.94%2-Mar-98 88.98 4.98%1-Apr-98 89.88 1.01%1-May-98 88.31 -1.76%1-Jun-98 91.91 4.00%1-Jul-98 90.94 -1.06%

3-Aug-98 77.78 -15.63%1-Sep-98 82.76 6.21%1-Oct-98 89.52 7.85%


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A B C D

2-Nov-98 94.95 5.89%1-Dec-98 100.47 5.65%4-Jan-99 104.69 4.11%1-Feb-99 101.42 -3.17%1-Mar-99 105.47 3.92%

1-Apr-99 109.53 3.78%3-May-99 106.91 -2.42%1-Jun-99 112.85 5.41%

1-Jul-99 109.32 -3.18%2-Aug-99 108.78 -0.50%1-Sep-99 105.80 -2.78%1-Oct-99 112.49 6.13%1-Nov-99 114.77 2.01%1-Dec-99 121.64 5.81%3-Jan-00 115.52 -5.16%1-Feb-00 113.32 -1.92%1-Mar-00 124.38 9.31%

3-Apr-00 120.64 -3.05%1-May-00 118.18 -2.06%1-Jun-00 121.12 2.46%3-Jul-00 119.31 -1.51%1-Aug-00 126.70 6.01%1-Sep-00 120.00 -5.43%2-Oct-00 119.48 -0.43%1-Nov-00 110.07 -8.20%1-Dec-00 110.63 0.51%2-Jan-01 114.55 3.48%

1-Feb-01 104.09 -9.58%1-Mar-01 97.46 -6.58%2-Apr-01 105.04 7.49%

1-May-01 105.72 0.65%1-Jun-01 103.13 -2.48%2-Jul-01 102.10 -1.00%1-Aug-01 95.70 -6.47%4-Sep-01 87.95 -8.44%1-Oct-01 89.61 1.87%1-Nov-01 96.47 7.38%3-Dec-01 97.32 0.88%2-Jan-02 95.88 -1.49%

1-Feb-02 94.03 -1.95%1-Mar-02 97.55 3.68%1-Apr-02 91.62 -6.27%

1-May-02 90.93 -0.76%3-Jun-02 84.44 -7.40%1-Jul-02 77.92 -8.04%1-Aug-02 78.43 0.65%3-Sep-02 69.89 -11.53%1-Oct-02 76.03 8.42%

1-Nov-02 80.71 5.97%2-Dec-02 75.74 -6.36%2-Jan-03 73.76 -2.65%


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3-Feb-03 72.64 -1.53%3-Mar-03 73.33 0.95%1-Apr-03 79.38 7.93%1-May-03 83.56 5.13%2-Jun-03 84.61 1.25%

1-Jul-03 86.09 1.73%1-Aug-03 87.75 1.91%2-Sep-03 86.81 -1.08%

1-Oct-03 91.71 5.49%3-Nov-03 92.50 0.86%1-Dec-03 97.33 5.09%2-Jan-04 99.10 1.80%2-Feb-04 100.47 1.37%1-Mar-04 98.95 -1.52%1-Apr-04 97.39 -1.59%3-May-04 98.71 1.35%1-Jun-04 100.61 1.91%

1-Jul-04 97.28 -3.37%2-Aug-04 97.65 0.38%1-Sep-04 98.69 1.06%1-Oct-04 100.19 1.51%1-Nov-04 104.24 3.96%1-Dec-04 107.78 3.34%3-Jan-05 105.14 -2.48%1-Feb-05 107.34 2.07%1-Mar-05 105.45 -1.78%1-Apr-05 103.43 -1.93%

2-May-05 106.71 3.12%1-Jun-05 106.84 0.12%1-Jul-05 110.80 3.64%

1-Aug-05 109.79 -0.92%1-Sep-05 110.66 0.79%3-Oct-05 108.80 -1.70%1-Nov-05 112.90 3.70%1-Dec-05 112.92 0.02%3-Jan-06 115.91 2.61%1-Feb-06 116.21 0.26%1-Mar-06 117.65 1.23%3-Apr-06 119.22 1.33%

1-May-06 115.76 -2.95%1-Jun-06 115.91 0.13%3-Jul-06 116.61 0.60%

1-Aug-06 119.37 2.34%


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A B C D E

Average monthly risk premium 0.46%


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878889909192

939495

A B C D E

2-Apr-90 21.84 -2.53% 0.66% -3.19%1-May-90 23.95 9.22% 0.65% 8.58%1-Jun-90 23.79 -0.67% 0.65% -1.32%2-Jul-90 23.71 -0.34% 0.64% -0.98%1-Aug-90 21.57 -9.46% 0.64% -10.09%

4-Sep-90 20.51 -5.04% 0.62% -5.66%1-Oct-90 20.43 -0.39% 0.61% -1.00%1-Nov-90 21.74 6.21% 0.60% 5.62%

3-Dec-90 22.33 2.68% 0.59% 2.09%2-Jan-91 23.3 4.25% 0.56% 3.69%1-Feb-91 24.96 6.88% 0.52% 6.36%1-Mar-91 25.56 2.38% 0.50% 1.88%1-Apr-91 25.61 0.20% 0.49% -0.30%1-May-91 26.7 4.17% 0.47% 3.70%3-Jun-91 25.49 -4.64% 0.46% -5.09%1-Jul-91 26.67 4.53% 0.46% 4.06%1-Aug-91 27.29 2.30% 0.47% 1.83%

3-Sep-91 26.83 -1.70% 0.44% -2.14%1-Oct-91 27.19 1.33% 0.44% 0.90%1-Nov-91 26.1 -4.09% 0.42% -4.51%2-Dec-91 29.07 10.78% 0.38% 10.40%2-Jan-92 28.53 -1.88% 0.34% -2.21%3-Feb-92 28.89 1.25% 0.32% 0.94%2-Mar-92 28.33 -1.96% 0.32% -2.28%1-Apr-92 29.16 2.89% 0.34% 2.55%1-May-92 29.3 0.48% 0.31% 0.17%1-Jun-92 28.86 -1.51% 0.30% -1.82%

1-Jul-92 30.03 3.97% 0.31% 3.67%3-Aug-92 29.41 -2.09% 0.27% -2.35%1-Sep-92 29.75 1.15% 0.26% 0.89%

1-Oct-92 29.85 0.34% 0.24% 0.09%2-Nov-92 30.87 3.36% 0.24% 3.12%1-Dec-92 31.46 1.89% 0.26% 1.63%4-Jan-93 31.49 0.10% 0.27% -0.17%1-Feb-93 31.92 1.36% 0.25% 1.11%1-Mar-93 32.59 2.08% 0.24% 1.83%1-Apr-93 31.8 -2.45% 0.25% -2.70%3-May-93 32.64 2.61% 0.24% 2.37%1-Jun-93 32.73 0.28% 0.25% 0.03%

1-Jul-93 32.59 -0.43% 0.26% -0.68%2-Aug-93 33.82 3.70% 0.25% 3.45%1-Sep-93 33.56 -0.77% 0.25% -1.02%

1-Oct-93 34.25 2.04% 0.25% 1.79%1-Nov-93 33.91 -1.00% 0.25% -1.25%1-Dec-93 34.33 1.23% 0.26% 0.97%3-Jan-94 35.49 3.32% 0.26% 3.07%1-Feb-94 34.52 -2.77% 0.25% -3.02%1-Mar-94 33.01 -4.47% 0.27% -4.74%

4-Apr-94 33.44 1.29% 0.29% 1.00%2-May-94 33.97 1.57% 0.31% 1.27%1-Jun-94 33.14 -2.47% 0.35% -2.82%


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144145146

A B C D E

1-Jul-94 34.23 3.24% 0.35% 2.89%1-Aug-94 35.62 3.98% 0.36% 3.62%1-Sep-94 34.75 -2.47% 0.37% -2.85%3-Oct-94 35.53 2.22% 0.39% 1.83%1-Nov-94 34.23 -3.73% 0.41% -4.14%

1-Dec-94 34.73 1.45% 0.44% 1.01%3-Jan-95 35.63 2.56% 0.47% 2.09%1-Feb-95 37.01 3.80% 0.48% 3.32%

1-Mar-95 38.1 2.90% 0.48% 2.42%3-Apr-95 39.22 2.90% 0.48% 2.42%1-May-95 40.78 3.90% 0.47% 3.43%1-Jun-95 41.72 2.28% 0.47% 1.81%3-Jul-95 43.1 3.25% 0.46% 2.80%1-Aug-95 43.21 0.25% 0.45% -0.20%1-Sep-95 45.03 4.13% 0.45% 3.68%2-Oct-95 44.87 -0.36% 0.44% -0.80%1-Nov-95 46.83 4.28% 0.44% 3.84%

1-Dec-95 47.74 1.92% 0.45% 1.48%2-Jan-96 49.35 3.32% 0.43% 2.89%1-Feb-96 49.81 0.93% 0.42% 0.51%1-Mar-96 50.3 0.98% 0.40% 0.58%1-Apr-96 51.03 1.44% 0.41% 1.03%1-May-96 52.33 2.52% 0.41% 2.10%3-Jun-96 52.53 0.38% 0.42% -0.04%1-Jul-96 50.21 -4.52% 0.42% -4.94%1-Aug-96 51.26 2.07% 0.43% 1.64%3-Sep-96 54.13 5.45% 0.42% 5.03%

1-Oct-96 55.62 2.72% 0.42% 2.29%1-Nov-96 59.83 7.30% 0.42% 6.88%2-Dec-96 58.65 -1.99% 0.42% -2.41%

2-Jan-97 62.31 6.05% 0.41% 5.64%3-Feb-97 62.8 0.78% 0.42% 0.36%3-Mar-97 60.2 -4.23% 0.42% -4.65%1-Apr-97 63.79 5.79% 0.43% 5.36%1-May-97 67.67 5.90% 0.43% 5.47%2-Jun-97 70.68 4.35% 0.42% 3.93%1-Jul-97 76.31 7.66% 0.41% 7.25%1-Aug-97 72.03 -5.77% 0.42% -6.19%2-Sep-97 75.97 5.33% 0.43% 4.90%

1-Oct-97 73.43 -3.40% 0.41% -3.81%3-Nov-97 76.8 4.49% 0.41% 4.07%1-Dec-97 78.11 1.69% 0.43% 1.26%

2-Jan-98 78.98 1.11% 0.43% 0.68%2-Feb-98 84.66 6.94% 0.42% 6.52%2-Mar-98 88.98 4.98% 0.42% 4.55%1-Apr-98 89.88 1.01% 0.42% 0.59%1-May-98 88.31 -1.76% 0.41% -2.17%1-Jun-98 91.91 4.00% 0.42% 3.58%

1-Jul-98 90.94 -1.06% 0.42% -1.48%3-Aug-98 77.78 -15.63% 0.41% -16.04%1-Sep-98 82.76 6.21% 0.41% 5.80%


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189190191192193194

195196197

A B C D E

1-Oct-98 89.52 7.85% 0.38% 7.47%2-Nov-98 94.95 5.89% 0.33% 5.56%1-Dec-98 100.47 5.65% 0.37% 5.28%4-Jan-99 104.69 4.11% 0.37% 3.75%1-Feb-99 101.42 -3.17% 0.36% -3.53%

1-Mar-99 105.47 3.92% 0.37% 3.55%1-Apr-99 109.53 3.78% 0.37% 3.41%3-May-99 106.91 -2.42% 0.36% -2.78%

1-Jun-99 112.85 5.41% 0.38% 5.03%1-Jul-99 109.32 -3.18% 0.38% -3.56%2-Aug-99 108.78 -0.50% 0.38% -0.87%1-Sep-99 105.8 -2.78% 0.39% -3.17%1-Oct-99 112.49 6.13% 0.39% 5.74%1-Nov-99 114.77 2.01% 0.41% 1.60%1-Dec-99 121.64 5.81% 0.42% 5.39%3-Jan-00 115.52 -5.16% 0.43% -5.60%1-Feb-00 113.32 -1.92% 0.44% -2.37%

1-Mar-00 124.38 9.31% 0.46% 8.85%3-Apr-00 120.64 -3.05% 0.47% -3.53%1-May-00 118.18 -2.06% 0.47% -2.53%1-Jun-00 121.12 2.46% 0.48% 1.97%3-Jul-00 119.31 -1.51% 0.47% -1.98%1-Aug-00 126.7 6.01% 0.50% 5.51%1-Sep-00 120 -5.43% 0.51% -5.94%2-Oct-00 119.48 -0.43% 0.50% -0.93%1-Nov-00 110.07 -8.20% 0.51% -8.71%1-Dec-00 110.63 0.51% 0.51% -0.01%

2-Jan-01 114.55 3.48% 0.48% 3.00%1-Feb-01 104.09 -9.58% 0.43% -10.00%1-Mar-01 97.46 -6.58% 0.41% -6.99%

2-Apr-01 105.04 7.49% 0.37% 7.12%1-May-01 105.72 0.65% 0.32% 0.32%1-Jun-01 103.13 -2.48% 0.30% -2.78%2-Jul-01 102.1 -1.00% 0.29% -1.29%1-Aug-01 95.7 -6.47% 0.29% -6.77%4-Sep-01 87.95 -8.44% 0.28% -8.72%1-Oct-01 89.61 1.87% 0.22% 1.65%1-Nov-01 96.47 7.38% 0.18% 7.20%3-Dec-01 97.32 0.88% 0.16% 0.72%

2-Jan-02 95.88 -1.49% 0.14% -1.63%1-Feb-02 94.03 -1.95% 0.14% -2.09%1-Mar-02 97.55 3.68% 0.14% 3.53%

1-Apr-02 91.62 -6.27% 0.15% -6.42%1-May-02 90.93 -0.76% 0.14% -0.90%3-Jun-02 84.44 -7.40% 0.14% -7.55%1-Jul-02 77.92 -8.04% 0.14% -8.18%1-Aug-02 78.43 0.65% 0.14% 0.51%3-Sep-02 69.89 -11.53% 0.14% -11.66%

1-Oct-02 76.03 8.42% 0.14% 8.28%1-Nov-02 80.71 5.97% 0.13% 5.84%2-Dec-02 75.74 -6.36% 0.10% -6.46%


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240241

A B C D E

2-Jan-03 73.76 -2.65% 0.10% -2.75%3-Feb-03 72.64 -1.53% 0.10% -1.63%3-Mar-03 73.33 0.95% 0.10% 0.85%1-Apr-03 79.38 7.93% 0.09% 7.83%1-May-03 83.56 5.13% 0.09% 5.04%

2-Jun-03 84.61 1.25% 0.09% 1.16%1-Jul-03 86.09 1.73% 0.08% 1.66%1-Aug-03 87.75 1.91% 0.08% 1.83%

2-Sep-03 86.81 -1.08% 0.08% -1.16%1-Oct-03 91.71 5.49% 0.08% 5.41%3-Nov-03 92.5 0.86% 0.08% 0.78%1-Dec-03 97.33 5.09% 0.08% 5.01%2-Jan-04 99.1 1.80% 0.08% 1.73%2-Feb-04 100.47 1.37% 0.07% 1.30%1-Mar-04 98.95 -1.52% 0.08% -1.60%1-Apr-04 97.39 -1.59% 0.08% -1.67%3-May-04 98.71 1.35% 0.08% 1.27%

1-Jun-04 100.61 1.91% 0.09% 1.82%1-Jul-04 97.28 -3.37% 0.11% -3.47%2-Aug-04 97.65 0.38% 0.11% 0.27%1-Sep-04 98.69 1.06% 0.12% 0.94%1-Oct-04 100.19 1.51% 0.14% 1.37%1-Nov-04 104.24 3.96% 0.15% 3.82%1-Dec-04 107.78 3.34% 0.17% 3.17%3-Jan-05 105.14 -2.48% 0.18% -2.66%1-Feb-05 107.34 2.07% 0.19% 1.88%1-Mar-05 105.45 -1.78% 0.21% -1.99%

1-Apr-05 103.43 -1.93% 0.23% -2.16%2-May-05 106.71 3.12% 0.23% 2.89%1-Jun-05 106.84 0.12% 0.24% -0.11%

1-Jul-05 110.8 3.64% 0.25% 3.39%1-Aug-05 109.79 -0.92% 0.27% -1.18%1-Sep-05 110.66 0.79% 0.29% 0.50%3-Oct-05 108.8 -1.70% 0.29% -1.98%1-Nov-05 112.9 3.70% 0.31% 3.39%1-Dec-05 112.92 0.02% 0.32% -0.31%3-Jan-06 115.91 2.61% 0.32% 2.29%1-Feb-06 116.21 0.26% 0.35% -0.09%1-Mar-06 117.65 1.23% 0.37% 0.86%

3-Apr-06 119.22 1.33% 0.38% 0.95%1-May-06 115.76 -2.95% 0.38% -3.33%1-Jun-06 115.91 0.13% 0.39% -0.26%

3-Jul-06 116.61 0.60% 0.40% 0.20%1-Aug-06 119.37 2.34% 0.41% 1.93%


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Intel beta 2.2516

Historical market risk premium 5.50%Intel tax rate, TC 31.29%


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Market price/earnings multiple, August 2006 17

Equity cash flow payout ratio 50.00%Anticipated growth of market equity cash flow 6.00%

Expected market return, E(rM) 9.12%

Intel cost of equity calculationsIntel beta 2.2516

Intel tax rate, TC 31.29%

Risk free rate, rf 4.93%

Intel cost of equity, rE,Intel Classic CAPM 14.36% Tax-adjusted CAPM 16.29%

COMPUTING THE COST OF EQUITY FOR I

PRICE/EARNINGS MULTIPLE T

Note: Price/Earnings ratio for S&P 500 from http://www.bullandbe


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A B C

2005/12/31 2004/12/31Cash and cash equivalents 316,000,000 282,000,000

Short-term borrowings 805,000,000 1,818,000,000Current portion of long-term debt 1,268,000,000 750,000,000

Due to Altria Group, Inc. and affiliates 652,000,000 227,000,000Long-term debt 8,475,000,000 9,723,000,000

Interest and other debt expense, net 636,000,000 666,000,000

Net debt 10,884,000,000 12,236,000,000Net interest cost 5.50%

Total debt 11,200,000,000 12,518,000,000

Cash paid: Interest 679,000,000 633,000,000

Interest cost 5.73%

Note: Altria debt is priced at LIBOR (from financial statements)

COMPUTING THE COST OF DEBT FOR


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Type Issuer Price Coupon(%) Maturity YTM(%)

Corp PANHANDLE EASTN PIPE LINE CO 100.29 2.75 15-Mar-07 2.24%Corp SAFEWAY INC 104.75 9.875 15-Mar-07 1.62%Corp WEYERHAEUSER CO 102.35 6.125 15-Mar-07 2.03%Corp CONSTELLATION ENERGY GROUP INC 102.35 6.35 1-Apr-07 2.53%Corp PENNEY J C INC 103.1 7.6 1-Apr-07 2.56%

Corp MOHAWK INDS INC 102.61 6.5 15-Apr-07 2.50%Corp PROGRESS ENERGY INC 102.26 6.05 15-Apr-07 2.59%Corp AOL TIME WARNER INC 102.34 6.15 1-May-07 2.78%Corp ARAMARK SVCS INC 102.77 7 1-May-07 3.01%Corp BANK UTD CORP 104.32 8.875 1-May-07 2.67%Corp COMCAST CABLE COMMUNICATIONS 103.96 8.375 1-May-07 2.68%Corp STARWOOD HOTELS&RESORTS WRLDWD 103 7.375 1-May-07 3.05%

Corp VIACOM INC 101.9 5.625 1-May-07 2.89%Corp REALTY INCOME CORP 103.41 7.75 6-May-07 2.94%

Corp CIGNA CORP 103.31 7.4 15-May-07 2.88%Corp TELUS CORP 103.58 7.5 1-Jun-07 2.87%Corp EOP OPER LTD PARTNERSHIP 102.98 6.763 15-Jun-07 3.08%Corp POTASH CORP SASK INC 103.25 7.125 15-Jun-07 3.11%Corp VORNADO RLTY TR 102.04 5.625 15-Jun-07 3.10%Corp KENTUCKY POWER CO 102.06 5.5 1-Jul-07 3.08%Corp AVALONBAY CMNTYS INC MTN BE 101.45 5 1-Aug-07 3.44%Corp ARCHSTONE SMITH TR 101.62 5 15-Aug-07 3.33%Corp BANK OKLA N A TULSA 103.54 7.125 15-Aug-07 3.48%Corp LIBERTY PPTY LTD PARTNERSHIP 103.56 7.25 15-Aug-07 3.57%

Corp MASCO CORP 101.15 4.625 15-Aug-07 3.44%Corp RAYTHEON CO 103.09 6.75 15-Aug-07 3.56%Corp TIME WARNER COMPANIES INC 104.45 8.18 15-Aug-07 3.59%Corp TANDY CORP 103.33 6.95 1-Sep-07 3.66%Corp ICI WILMINGTON INC 103.27 7.05 15-Sep-07 3.92%Corp PHH CORP INTERNOTES BOOK ENTRY 101.9 5.6 15-Sep-07 3.78%Corp OCEAN ENERGY INC DEL 100.82 4.375 1-Oct-07 3.62%Corp USA WASTE SVCS INC 103.58 7.125 1-Oct-07 3.83%Corp CALENERGY INC 104.21 7.63 15-Oct-07 3.88%Corp ENTERPRISE PRODS OPER LP 100.15 4 15-Oct-07 3.87%Corp POTOMAC ELEC PWR CO 102.73 6.25 15-Oct-07 3.82%

Corp ROYAL CARIBBEAN CRUISES LTD 103.13 7 15-Oct-07 4.20%Corp UNION PAC CORP 103.99 5.75 15-Oct-07 2.24%Corp CVS CORP 100.01 3.875 1-Nov-07 3.87%Corp ENSCO INTL INC 103.33 6.75 15-Nov-07 3.97%Corp EOP OPER LTD PARTNERSHIP 104.56 7.75 15-Nov-07 3.96%Corp MALLINCKRODT GROUP INC 103.1 6.5 15-Nov-07 3.92%Corp MEDIAONE GROUP INC MTN BE 103.02 6.83 15-Nov-07 4.30%Corp UNION CAMP CORP 103.04 6.5 15-Nov-07 3.97%Corp PSEG FDG TR I 101.57 5.381 16-Nov-07 4.07%Corp PLATINUM UNDERWRITERS FIN INC 102.17 6.371 16-Nov-07 4.55%

YAHOO: NON-CALLABLE BBB CORPORATE BONDS WITH MAT

11 August 2006


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Corp GENERAL MLS INC 99.89 3.875 30-Nov-07 3.96%Corp LILLY INDS INC 104.46 7.75 1-Dec-07 4.16%Corp AMERICAN FINL GROUP INC OHIO 103.81 7.125 15-Dec-07 4.14%

Corp PENNEY JC INC MTN BE 102.92 6.5 15-Dec-07 4.21%Corp PRECISION CASTPARTS CORP 103.64 6.75 15-Dec-07 3.91%Corp NEWS AMER INC 103.56 6.625 9-Jan-08 3.97%

Corp CNA FINL CORP 103.02 6.45 15-Jan-08 4.22%Corp CENTURY TEL ENTERPRISES INC 102.83 6.3 15-Jan-08 4.21%Corp CLEAR CHANNEL COMMUNICATIONS 100.42 4.625 15-Jan-08 4.31%Corp SARA LEE CORP MTN BE 102.38 6 15-Jan-08 4.24%Corp TIME WARNER COMPANIES INC 104.42 7.48 15-Jan-08 4.22%Corp AMERICAN STD INC 104.21 7.375 1-Feb-08 4.35%Corp CONSUMERS ENERGY CO 102.98 6.375 1-Feb-08 4.24%Corp UNION PAC CORP 103.52 6.625 1-Feb-08 4.11%

Corp ARAMARK SVCS INC 102.38 6.375 15-Feb-08 4.71%Corp AVNET INC 107.51 9.75 15-Feb-08 4.50%Corp DOMINION RES INC VA NEW 100.19 4.125 15-Feb-08 4.00%Corp EOP OPER LTD PARTNERSHIP 103.55 6.75 15-Feb-08 4.27%

Corp IDEX CORP 103.42 6.875 15-Feb-08 4.48%Corp LENFEST COMMUNICATIONS INC 104.77 7.625 15-Feb-08 4.30%Corp MARSH & MCLENNAN COS INC 99.34 3.625 15-Feb-08 4.08%Corp PEMEX PROJ FDG MASTER TR 106.23 8.5 15-Feb-08 4.16%Corp TANGER PPTYS LTD PARTNERSHIP 106.63 9.125 15-Feb-08 4.49%Corp HOSPITALITY PPTYS TR 103.96 7 1-Mar-08 4.31%

Corp KROGER CO 103.13 6.375 1-Mar-08 4.25%Corp UNITED DOMINION RLTY TR MTNSBE 100.27 4.5 3-Mar-08 4.32%Corp BECKMAN COULTER INC 104.68 7.45 4-Mar-08 4.29%Corp ROYAL CARIBBEAN CRUISES LTD 103.5 6.75 15-Mar-08 4.43%Corp GREATER BAY BANCORP 101.06 5.25 31-Mar-08 4.56%Corp CAROLINA PWR & LT CO MTN BE 103.6 6.65 1-Apr-08 4.32%Corp FORTUNE BRANDS INC 103.04 6.25 1-Apr-08 4.29%

Corp GOODRICH CORP 104.81 7.5 15-Apr-08 4.46%Corp PROLOGIS 104.35 7.1 15-Apr-08 4.35%Corp APPALACHIAN PWR CO 98.75 3.6 15-May-08 4.35%Corp BERKLEY W R CORP 108.8 9.875 15-May-08 4.56%

Corp DOMINION RES INC VA NEW 102.21 5.687 15-May-08 4.37%Corp MIDAMERICAN ENERGY HLDGS NEW 98.2 3.5 15-May-08 4.58%Corp TRW INC SR MEDTERMNTS BK EN 103.28 6.3 15-May-08 4.32%Corp DUKE RLTY LTD PARTNERSHIP 103.98 6.75 30-May-08 4.41%Corp AAG HLDG INC 103.77 6.875 1-Jun-08 4.65%Corp CENTERPOINT ENERGY INC 102.14 5.875 1-Jun-08 4.61%Corp NORTHEAST UTILS 98.14 3.3 1-Jun-08 4.39%Corp ARCHSTONE-SMITH OPER TR 97.26 3 15-Jun-08 4.58%

Corp SARA LEE CORP MTN BE 102.61 6.15 19-Jun-08 4.65%Corp PHILIP MORRIS COS INC 105.5 7.65 1-Jul-08 4.55%Corp CAPITAL ONE FINL CORP 104.69 7.125 1-Aug-08 4.59%Corp COX COMMUNICATIONS INC NEW 103.27 6.4 1-Aug-08 4.63%Corp MILLER BREWING CO 99.53 4.25 15-Aug-08 4.50%Corp PENNEY J C INC 106 7.375 15-Aug-08 4.21%Corp CONTINENTAL CABLEVISION INC 108.37 9 1-Sep-08 4.65%Corp TIME WARNER ENTMT CO LP 105.12 7.25 1-Sep-08 4.59%Corp BALT GAS & ELEC CO MTN BE BONY 102.24 5.78 1-Oct-08 4.66%


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Corp CADBURY SCHWEPPES US FINANACE 98.66 3.875 1-Oct-08 4.55%Corp COX COMMUNICATIONS INC NEW 98.17 3.875 1-Oct-08 4.79%Corp TRIBUNE CO MTN BK MONT TR CO 101.08 5.5 6-Oct-08 4.96%

Corp MASCO CORP 102.07 5.75 15-Oct-08 4.73%Corp RAYCHEM CORP DEL 105.11 7.2 15-Oct-08 4.68%Corp UNIVISION COMMUNICATIONS INC 97.91 3.875 15-Oct-08 4.90%

Corp NEWS AMER HLDGS INC 105.5 7.375 17-Oct-08 4.67%Corp CHANCELLOR MEDIA CORP LA 106.18 8 1-Nov-08 5.00%Corp MAY DEPT STORES CO 102.61 5.95 1-Nov-08 4.69%Corp UNION PAC CORP 105.55 7.25 1-Nov-08 4.57%Corp WEYERHAEUSER CO 103.01 5.95 1-Nov-08 4.50%Corp ALTRIA GROUP INC 101.96 5.625 4-Nov-08 4.68%Corp COMCAST CABLE COMMUNICATIONS 103.31 6.2 15-Nov-08 4.63%Corp SPRINT CAP CORP 103.2 6.125 15-Nov-08 4.61%

Corp TELECOM ITALIA CAP 98.55 4 15-Nov-08 4.69%Corp WASTE MGMT INC DEL 103.98 6.5 15-Nov-08 4.61%Corp HALLIBURTON CO MTN BE 102.12 5.625 1-Dec-08 4.64%Corp LUBRIZOL CORP 102.14 5.875 1-Dec-08 4.87%

Corp TRIBUNE CO MTN BK MONT TR CO 101.26 5.67 8-Dec-08 5.08%Corp CNA FINL CORP 103.79 6.6 15-Dec-08 4.85%Corp EOP OPER LTD PARTNERSHIP EOP 98.2 4 15-Dec-08 4.82%Corp OAKMONT ASSET TR 98.51 4.514 22-Dec-08 5.19%Corp D R HORTON INC 100 5 15-Jan-09 5.00%Corp EOP OPER LTD PARTNERSHIP 104.43 6.8 15-Jan-09 4.83%

Corp VALASSIS COMMUNICATIONS INC 103.38 6.625 15-Jan-09 5.12%Corp D R HORTON INC 106.5 8 1-Feb-09 5.15%Corp EOP OPER LTD PARTNERSHIP EOP 97.69 4.1 15-Feb-09 5.09%Corp CONSUMERS ENERGY CO 100.05 4.8 17-Feb-09 4.78%Corp BRITISH SKY BROADCASTING GROUP 104.77 6.875 23-Feb-09 4.84%Corp LENNAR CORP 106 7.625 1-Mar-09 5.08%Corp PPL CAP FDG INC 98.92 4.33 1-Mar-09 4.78%

Corp SOUTHWESTERN PUB SVC CO 103.55 6.2 1-Mar-09 4.70%Corp BURLINGTON NORTHN SANTA FE CP 103.58 6.125 15-Mar-09 4.63%Corp COLONIAL BK MONTGOMERY ALA 107.31 8 15-Mar-09 4.94%Corp MACK-CALI RLTY L P 106.04 7.25 15-Mar-09 4.73%

Corp PSEG PWR LLC 97.58 3.75 1-Apr-09 4.74%Corp PENNSYLVANIA ELEC CO 103.09 6.125 1-Apr-09 4.85%Corp UNION CARBIDE CORP 102.99 6.7 1-Apr-09 5.46%Corp AMERICAN FINL GROUP INC OHIO 105.64 7.125 15-Apr-09 4.84%Corp DTE ENERGY CO 104.24 6.65 15-Apr-09 4.93%Corp UNION PAC RES GROUP INC 106.02 7.3 15-Apr-09 4.86%Corp NIPSCO CAP MKTS INC MTN BE 106.73 7.72 17-Apr-09 4.99%Corp ASHLAND INC MTN BE 105.38 6.86 1-May-09 4.72%

Corp GENERAL AMERICAN TRANS CORP 104.7 6.75 1-May-09 4.87%Corp SPIEKER PPTYS L P 105.94 7.25 1-May-09 4.88%Corp SPRINT CAP CORP 103.97 6.375 1-May-09 4.79%Corp CLEAR CHANNEL COMMUNICATIONS 97.78 4.25 15-May-09 5.13%Corp SEMPRA ENERGY 99.84 4.75 15-May-09 4.81%Corp GATX FINL CORP 109.44 8.875 1-Jun-09 5.19%Corp MARSH & MCLENNAN COS INC 105.77 7.125 15-Jun-09 4.91%Corp UNITED DOMINION REALTY TR INC 103.96 6.5 15-Jun-09 4.98%Corp WILLAMETTE INDS INC MTN BE 104.17 6.45 18-Jun-09 4.86%


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Corp BRITISH SKY BROADCASTING GROUP 108.86 8.2 15-Jul-09 4.89%Corp MAY DEPT STORES CO 99.77 4.8 15-Jul-09 4.88%Corp PUBLIC SERVICE CO COLO 105.28 6.875 15-Jul-09 4.91%

Corp PULTE HOMES INC 99.27 4.875 15-Jul-09 5.15%Corp COX COMMUNICATIONS INC NEW 107.72 7.875 15-Aug-09 5.06%Corp NEW PLAN EXCEL RLTY TR INC MTN 106.5 7.4 15-Sep-09 5.09%

Corp DUKE CAP CORP 107.23 7.5 1-Oct-09 4.97%Corp ELECTRONIC DATA SYS CORP 105.95 7.125 15-Oct-09 5.06%Corp CLEVELAND ELEC ILLUM CO 107.29 7.43 1-Nov-09 4.94%Corp FEDERAL REALTY INVT TR 110.5 8.75 1-Dec-09 5.23%Corp DOMINION RES INC 100.45 5.125 15-Dec-09 4.98%Corp WELLPOINT INC 98.07 4.25 15-Dec-09 4.88%Corp CLEAR CHANNEL COMMUNICATIONS 97.11 4.5 15-Jan-10 5.44%Corp COMCAST CORP NEW 102.74 5.85 15-Jan-10 4.97%

Corp COX COMMUNICATIONS INC NEW 98.26 4.625 15-Jan-10 5.19%Corp TELECOM ITALIA CAP 96.36 4 15-Jan-10 5.18%Corp COX COMMUNICATIONS INC NEW 98.27 4.625 15-Jan-10 5.18%Corp TELECOM ITALIA CAP 96.36 4 15-Jan-10 5.18%

Corp COLONIAL RLTY LTD PARTNERSHIP 98.89 4.75 1-Feb-10 5.10%Corp IBP INC 108.09 7.95 1-Feb-10 5.36%Corp KROGER CO 108.78 8.05 1-Feb-10 5.24%Corp SAFECO CORP 99.65 4.875 1-Feb-10 4.99%Corp AMERICAN STD INC 107.3 7.625 15-Feb-10 5.31%Corp AIFUL CORPORATION 96.59 4.45 16-Feb-10 5.54%

Corp PENNEY J C CORP INC 109.17 8 1-Mar-10 5.14%Corp SEMPRA ENERGY 109.33 7.95 1-Mar-10 5.04%Corp NISSAN MTR ACCEP CORP 98.25 4.625 8-Mar-10 5.17%Corp AMERICAN ELEC PWR INC 101.17 5.375 15-Mar-10 5.01%Corp METROPOLITAN EDISON CO 97.95 4.45 15-Mar-10 5.08%Corp NEWS AMER INC 99.26 4.75 15-Mar-10 4.98%Corp RAYTHEON CO 105.22 6.55 15-Mar-10 4.94%

Corp SCOTTISH PWR PLC 99.39 4.91 15-Mar-10 5.10%Corp INTL PAPER CO 96.67 4 1-Apr-10 5.01%Corp WASHINGTON MUT INC 110.22 8.25 1-Apr-10 5.12%Corp MACK-CALI RLTY L P 99.31 5.05 15-Apr-10 5.26%

Corp NEWELL RUBBERMAID INC 96.37 4 1-May-10 5.09%Corp NORFOLK SOUTHERN CORP 112.21 8.625 15-May-10 5.01%Corp PEPCO HOLDINGS INC 96.03 4 15-May-10 5.18%Corp ROYAL CARIBBEAN CRUISES LTD 107.06 8 15-May-10 5.87%Corp ENTERPRISE PRODS OPER LP 98.92 4.95 1-Jun-10 5.26%Corp UNION PAC CORP 95.45 3.625 1-Jun-10 4.96%Corp DOMINION RES INC VA NEW 110.11 8.125 15-Jun-10 5.18%Corp EXELON CORP 98 4.45 15-Jun-10 5.03%

Corp NORTHERN BORDER PARTNERS L P 112.15 8.875 15-Jun-10 5.32%Corp HARRAHS OPER INC 100.64 5.5 1-Jul-10 5.31%Corp WILLIS NORTH AMER INC 99.49 5.125 15-Jul-10 5.27%Corp EOP OPER LTD PARTNERSHIP 109.97 8.1 1-Aug-10 5.27%Corp WASTE MGMT INC DEL 108.08 7.375 1-Aug-10 5.09%Corp PENNSYLVANIA ELEC CO UNSEC MTN 108.45 7.77 2-Aug-10 5.37%Corp TRIBUNE CO NEW 96.74 4.875 15-Aug-10 5.80%Corp DUKE ENERGY FIELD SVCS LLC 109.57 7.875 16-Aug-10 5.19%Corp SAFEWAY INC 98.63 4.95 16-Aug-10 5.33%


52/162

Corp SOVEREIGN BANCORP INC 98.83 4.8 1-Sep-10 5.12%Corp CLEAR CHANNEL COMMUNICATIONS 106.57 7.65 15-Sep-10 5.82%Corp CONAGRA FOODS INC 109.89 7.875 15-Sep-10 5.15%

Corp HEALTH CARE PPTY INVS INC MTN 98.23 4.875 15-Sep-10 5.36%Corp MARSH & MCLENNAN COS INC 99.76 5.15 15-Sep-10 5.21%Corp NUVEEN INVTS INC 99.03 5 15-Sep-10 5.27%

Corp PUBLIC SERVICE CO OKLA 98.89 4.85 15-Sep-10 5.16%Corp MOLSON COORS CAP FIN 99.25 4.85 22-Sep-10 5.05%Corp BERKLEY W R CORP 99.56 5.125 30-Sep-10 5.24%Corp EOP OPER LTD PARTNERSHIP 97.77 4.65 1-Oct-10 5.26%Corp ROYAL KPN NV 108.83 8 1-Oct-10 5.57%Corp TELECOM ITALIA CAP 98.3 4.875 1-Oct-10 5.34%Corp GTECH HLDGS CORP 98.13 4.75 15-Oct-10 5.25%Corp HALLIBURTON CO 101.26 5.5 15-Oct-10 5.16%

Corp HALLIBURTON CO 101.78 5.5 15-Oct-10 5.02%Corp CENTEX CORP 96.64 4.55 1-Nov-10 5.45%Corp KINDER MORGAN ENERGY PARTNERS 107.46 7.5 1-Nov-10 5.49%Corp MAY DEPT STORES CO 119.01 10.625 1-Nov-10 5.50%

Corp UNITRIN INC 97.98 4.875 1-Nov-10 5.42%Corp COMCAST CORP NEW 101.14 5.45 15-Nov-10 5.15%Corp NISOURCE FIN CORP 110.92 7.875 15-Nov-10 4.99%Corp TEXAS EASTN TRANSMISSION CORP 107.86 7.3 1-Dec-10 5.23%Corp XCEL ENERGY INC MINN 107.06 7 1-Dec-10 5.14%Corp BURLINGTON NORTHN SANTA FE CP 107.87 7.125 15-Dec-10 5.08%

Corp DOMINION RES INC VA NEW 98.23 4.75 15-Dec-10 5.21%Corp ISTAR FINL INC 102.61 6 15-Dec-10 5.32%Corp RAYTHEON CO 103.82 6 15-Dec-10 5.00%Corp VIRGINIA ELEC & PWR CO 97.56 4.5 15-Dec-10 5.13%Corp KINDER MORGAN FINANCE CORP ULC 95.83 5.35 5-Jan-11 6.46%Corp BOSTON SCIENTIFIC CORP 95.94 4.25 12-Jan-11 5.29%Corp AGL CAP CORP 107.48 7.125 14-Jan-11 5.20%

Corp BRE PROPERTIES INC 108.54 7.45 15-Jan-11 5.26%Corp FORTUNE BRANDS INC 99.56 5.125 15-Jan-11 5.24%Corp RAYTHEON CO 99.3 4.85 15-Jan-11 5.03%Corp RECKSON OPER PARTNERSHIP L P 98.41 5.15 15-Jan-11 5.56%

Corp WADDELL & REED FINL INC 100.43 5.6 15-Jan-11 5.49%Corp WELLPOINT INC 99.57 5 15-Jan-11 5.11%Corp COMCAST CABLE COMMUNICATIONS 106.08 6.75 30-Jan-11 5.20%Corp SPRINT CAP CORP 108.95 7.625 30-Jan-11 5.34%Corp CENTEX CORP 108.8 7.875 1-Feb-11 5.62%Corp ROYAL CARIBBEAN CRUISES LTD 110.5 8.75 2-Feb-11 6.03%Corp CARDINAL HEALTH INC 106.44 6.75 15-Feb-11 5.13%Corp NORFOLK SOUTHERN CORP 106.76 6.75 15-Feb-11 5.05%

Corp VORNADO RLTY L P 101.11 5.6 15-Feb-11 5.32%Corp RESIDENTIAL CAP CORP 100.42 6 22-Feb-11 5.89%Corp SAFEWAY INC 104.16 6.5 1-Mar-11 5.45%Corp NISSAN MTR ACCEP CORP 101.11 5.625 14-Mar-11 5.35%Corp ALCAN INC 105.27 6.45 15-Mar-11 5.14%Corp CSX CORP 106.3 6.75 15-Mar-11 5.18%Corp CLEAR CHANNEL COMMUNICATIONS 101.18 6.25 15-Mar-11 5.95%Corp COMCAST CORP NEW 101.05 5.5 15-Mar-11 5.24%Corp COX COMMUNICATIONS INC NEW 104.6 6.75 15-Mar-11 5.60%


53/162

Corp KINDER MORGAN ENERGY PARTNERS 104.92 6.75 15-Mar-11 5.52%Corp COLONIAL RLTY LTD PARTNERSHIP 97.94 4.8 1-Apr-11 5.31%Corp FEDERATED DEPT STORES INC DEL 105.47 6.625 1-Apr-11 5.28%

Corp KELLOGG CO 106.23 6.6 1-Apr-11 5.07%Corp KROGER CO 105.84 6.8 1-Apr-11 5.36%Corp RYDER SYS MTN BE 98.64 5 1-Apr-11 5.33%

Corp AOL TIME WARNER INC 105.13 6.75 15-Apr-11 5.49%Corp ONEOK INC NEW 106.64 7.125 15-Apr-11 5.49%Corp TRICON GLOBAL RESTAURANTS 114.09 8.875 15-Apr-11 5.41%Corp VIACOM INC 100.74 5.75 30-Apr-11 5.57%Corp ANADARKO FIN CO 106.03 6.75 1-May-11 5.28%Corp EXELON CORP 105.83 6.75 1-May-11 5.33%Corp HEALTHCARE RLTY TR 110.51 8.125 1-May-11 5.55%Corp PREMCOR REFNG GROUP INC 103.69 6.125 1-May-11 5.23%

Corp RYDER SYS MTN BE 102.41 5.95 2-May-11 5.36%Corp CLEAR CHANNEL COMMUNICATIONS 93.69 4.4 15-May-11 5.94%Corp PUBLIC SERVICE CO OKLA 97.67 4.7 15-May-11 5.26%Corp VIACOM INC 105.21 6.625 15-May-11 5.36%

Corp BLACK & DECKER CORP 107.17 7.125 1-Jun-11 5.40%Corp DTE ENERGY CO 106.78 7.05 1-Jun-11 5.42%Corp MATTEL INC MTN BE 104.6 7.3 13-Jun-11 6.18%Corp BOSTON SCIENTIFIC CORP 101.75 6 15-Jun-11 5.58%Corp EXELON GENERATION CO LLC 106.95 6.95 15-Jun-11 5.30%Corp WHIRLPOOL CORP 102.89 6.125 15-Jun-11 5.43%

Corp TELEFONICA EMISONES SA 102.72 5.984 20-Jun-11 5.34%Corp SABMILLER PLC 104.06 6.2 1-Jul-11 5.24%Corp QUEST DIAGNOSTICS INC 109.69 7.5 12-Jul-11 5.23%Corp ALLIED CAP CORP NEW 102.61 6.625 15-Jul-11 6.00%Corp BURLINGTON NORTHN SANTA FE CP 107.1 6.75 15-Jul-11 5.10%Corp EOP OPER LTD PARTNERSHIP 106.81 7 15-Jul-11 5.40%Corp HEINZ H J FIN CO 105.66 6.625 15-Jul-11 5.30%

Corp LAFARGE COPPEE S A 102.97 6.15 15-Jul-11 5.45%Corp PULTE HOMES INC 108.88 7.875 1-Aug-11 5.79%Corp CNA FINL CORP 102.17 6 15-Aug-11 5.50%Corp FIDELITY NATL FINL INC 104.05 7.3 15-Aug-11 6.34%

Corp REPUBLIC SVCS INC 106.39 6.75 15-Aug-11 5.28%Corp CONAGRA FOODS INC 106.31 6.75 15-Sep-11 5.32%Corp MAY DEPT STORES CO 108 7.45 15-Sep-11 5.62%Corp SARA LEE CORP 103.04 6.25 15-Sep-11 5.55%Corp DEVON FING CORP U L C 107.34 6.875 30-Sep-11 5.22%Corp TYSON FOODS INC 108.8 8.25 1-Oct-11 6.22%Corp TYCO INTL GROUP S A 105.61 6.375 15-Oct-11 5.12%Corp CONSOLIDATED NAT GAS CO 103.77 6.25 1-Nov-11 5.41%

Corp PPL ENERGY SUPPLY LLC 104.64 6.4 1-Nov-11 5.36%Corp FIRSTENERGY CORP 104.95 6.45 15-Nov-11 5.35%Corp COVENTRY HEALTH CARE INC 99.86 5.875 15-Jan-12 5.91%Corp WELLPOINT HEALTH NETWORK NEW 104.87 6.375 15-Jan-12 5.33%Corp EOP OPER LTD PARTNERSHIP 106.38 6.75 15-Feb-12 5.39%Corp TEPPCO PARTNERS L P 108.03 7.625 15-Feb-12 5.89%Corp CRH AMER INC 106.4 6.95 15-Mar-12 5.60%Corp CLEAR CHANNEL COMMUNICATIONS 94.29 5 15-Mar-12 6.23%Corp HEINZ H J FIN CO 102.43 6 15-Mar-12 5.49%


54/162

Corp JEFFERIES GROUP INC NEW 110.29 7.75 15-Mar-12 5.58%Corp KINDER MORGAN ENERGY PARTNERS 106.26 7.125 15-Mar-12 5.79%Corp MARSH & MCLENNAN COS INC 102.65 6.25 15-Mar-12 5.69%

Corp SPRINT CAP CORP 113.02 8.375 15-Mar-12 5.62%Corp WEYERHAEUSER CO 105.51 6.75 15-Mar-12 5.59%Corp MEADWESTVACO CORP 105.65 6.85 1-Apr-12 5.66%

Corp PROLOGIS 100.34 5.5 1-Apr-12 5.43%Corp KROGER CO 105.65 6.75 15-Apr-12 5.57%Corp UNION PAC CORP 106.35 6.5 15-Apr-12 5.19%Corp VALERO ENERGY CORP NEW 107.17 6.875 15-Apr-12 5.39%Corp AOL TIME WARNER INC 105.71 6.875 1-May-12 5.69%Corp STARWOOD HOTELS&RESORTS WRLDWD 109 7.875 1-May-12 5.99%Corp ARAMARK CORP 88.5 5 1-Jun-12 7.48%Corp PSEG PWR LLC 107.03 6.95 1-Jun-12 5.51%

Corp KENNAMETAL INC 107.32 7.2 15-Jun-12 5.70%Corp HEALTH CARE PPTY INVS INC 104.07 6.45 25-Jun-12 5.62%Corp DOMINION RES INC VA NEW 103.86 6.25 30-Jun-12 5.47%Corp NEXFOR INC 108.11 7.25 1-Jul-12 5.61%

Corp MAY DEPT STORES CO 111.78 8 15-Jul-12 5.63%Corp CONTINENTAL CORP 109.71 8.375 15-Aug-12 6.40%Corp PEPCO HOLDINGS INC 104.2 6.45 15-Aug-12 5.62%Corp VIACOM INC 100.47 5.625 15-Aug-12 5.53%Corp KINDER MORGAN INC 98.52 6.5 1-Sep-12 6.80%Corp SAFECO CORP 107 7.25 1-Sep-12 5.86%

Corp ALCAN INC 97.28 4.875 15-Sep-12 5.41%Corp AMERISOURCEBERGEN CORP 99.08 5.625 15-Sep-12 5.81%Corp CINCINNATI GAS & ELEC CO 101.45 5.7 15-Sep-12 5.42%Corp MIDAMERICAN ENERGY HLDGS NEW 103.01 5.875 1-Oct-12 5.29%Corp STANCORP FINL GROUP INC 107.21 6.875 1-Oct-12 5.47%Corp ASTORIA FINL CORP 101.39 5.75 15-Oct-12 5.48%Corp DEVELOPERS DIVERSIFIED RLTY CO 99.52 5.375 15-Oct-12 5.47%

Corp PLAINS ALL AMERN PIPELINE L P 111.18 7.75 15-Oct-12 5.58%Corp INTL PAPER CO 102.39 5.85 30-Oct-12 5.39%Corp CENDANT CORP 106 7.375 15-Jan-13 6.22%Corp CLEAR CHANNEL COMMUNICATIONS 96.38 5.75 15-Jan-13 6.45%

Corp TIME WARNER COMPANIES INC 115.84 9.125 15-Jan-13 6.10%Corp USA INTERACTIVE 103.3 7 15-Jan-13 6.36%Corp SEMPRA ENERGY 102.64 6 1-Feb-13 5.51%Corp AEP TEX CENT CO 99.82 5.5 15-Feb-13 5.53%Corp BERKLEY W R CORP 101.87 5.875 15-Feb-13 5.53%Corp DUKE CAP CORP 102.92 6.25 15-Feb-13 5.71%Corp AEP TEX NORTH CO 99.86 5.5 1-Mar-13 5.53%Corp COX COMMUNICATIONS INC NEW 107.18 7.125 1-Mar-13 5.79%

Corp NATIONAL FUEL GAS CO N J 97 5.25 1-Mar-13 5.81%Corp TXU ENERGY CO LLC 105.19 7 15-Mar-13 6.03%Corp CENTERPOINT ENERGY RESOURCES 111.45 7.875 1-Apr-13 5.77%Corp RESIDENTIAL CAP CORP 102.29 6.5 17-Apr-13 6.07%Corp D R HORTON INC 103 6.875 1-May-13 6.32%Corp FUND AMERN COS INC 99.08 5.875 15-May-13 6.04%Corp M D C HLDGS INC 94.15 5.5 15-May-13 6.59%Corp EMBARQ CORP 103.13 6.738 1-Jun-13 6.16%Corp ROYAL CARIBBEAN CRUISES LTD 102.5 7 15-Jun-13 6.54%


55/162

Corp CYTEC INDS INC 92.39 4.6 1-Jul-13 5.97%Corp HARLEYSVILLE GROUP INC 98.25 5.75 15-Jul-13 6.06%Corp PACKAGING CORP AMER 98.69 5.75 1-Aug-13 5.98%

Corp TELE COMMUNICATIONS INC 111.33 7.875 1-Aug-13 5.87%Corp CAROLINA TEL & TELEG CO 102.5 6.75 15-Aug-13 6.30%Corp PSI ENERGY INC 96.97 5 15-Sep-13 5.52%

Corp POTOMAC ELEC PWR CO 97.72 4.95 15-Nov-13 5.33%Corp TELECOM ITALIA CAP 96.36 5.25 15-Nov-13 5.87%Corp CONSOLIDATED NAT GAS CO 105.59 6.625 1-Dec-13 5.68%Corp ROYAL CARIBBEAN CRUISES LTD 101.5 6.875 1-Dec-13 6.61%Corp COMMERCE GROUP INC MASS 100.29 5.95 9-Dec-13 5.90%Corp CLEVELAND ELEC ILLUM CO 99.67 5.65 15-Dec-13 5.70%Corp IMCERA GROUP INC 106.39 7 15-Dec-13 5.91%Corp PLAINS ALL AMERN PIPELINE L P 99.53 5.625 15-Dec-13 5.70%

Corp CENTERPOINT ENERGY RES CORP 101.08 5.95 15-Jan-14 5.77%Corp COMCAST CORP NEW 97.26 5.3 15-Jan-14 5.76%Corp EXELON GENERATION CO LLC 98.57 5.35 15-Jan-14 5.59%Corp MACK-CALI RLTY L P 96.25 5.125 15-Feb-14 5.75%

Corp DUKE CAP CORP 98.73 5.5 1-Mar-14 5.71%Corp PACIFIC GAS & ELEC CO 96.38 4.8 1-Mar-14 5.39%Corp CORNING INC 102.14 5.9 15-Mar-14 5.55%Corp TOLL BROS FIN CORP 90.12 4.95 15-Mar-14 6.63%Corp METROPOLITAN EDISON CO 96.25 4.875 1-Apr-14 5.48%Corp GLENCORE FDG LLC 95.6 6 15-Apr-14 6.74%

Corp POTOMAC ELEC PWR CO 95.09 4.65 15-Apr-14 5.44%Corp MAGELLAN MIDSTREAM PRTNRS LP 103.26 6.45 1-Jun-14 5.92%Corp OHIO CAS CORP 106.57 7.3 15-Jun-14 6.23%Corp ARIZONA PUB SVC CO 99.97 5.8 30-Jun-14 5.80%Corp WESTAR ENERGY INC 102.94 6 1-Jul-14 5.53%Corp MARSH & MCLENNAN COS INC 96.23 5.375 15-Jul-14 5.98%Corp MAYTAG CORP MEDTERM NTS BK ENT 102.31 6.45 15-Aug-14 6.08%

Corp CLEAR CHANNEL COMMUNICATIONS 92.88 5.5 15-Sep-14 6.65%Corp D R HORTON INC 95 5.625 15-Sep-14 6.43%Corp TELECOM ITALIA CAP 93.18 4.95 30-Sep-14 6.02%Corp LUBRIZOL CORP 97.54 5.5 1-Oct-14 5.88%

Corp ATMOS ENERGY CORP 94.74 4.95 15-Oct-14 5.77%Corp INDIANA MICH PWR CO 95.95 5.05 15-Nov-14 5.67%Corp JONES APPAREL GROUP INC / 89.05 5.125 15-Nov-14 6.89%Corp CONSOLIDATED NAT GAS CO 95.24 5 1-Dec-14 5.73%Corp COMCAST CORP NEW 104.78 6.5 15-Jan-15 5.77%Corp ONCOR ELEC DELIVERY CO 104.06 6.375 15-Jan-15 5.76%Corp APPALACHIAN PWR CO 95.38 4.95 1-Feb-15 5.65%Corp CENTURYTEL INC 91.87 5 15-Feb-15 6.25%

Corp PULTE HOMES INC 93.33 5.2 15-Feb-15 6.22%Corp ENTERPRISE PRODS OPER LP 93.79 5 1-Mar-15 5.94%Corp INTL PAPER CO 96.22 5.3 1-Apr-15 5.86%Corp ARCHSTONE-SMITH OPER TR 97.18 5.25 1-May-15 5.66%Corp ODYSSEY RE HLDGS CORP 95.13 6.875 1-May-15 7.65%Corp HEALTH CARE REIT INC 98.86 5.875 15-May-15 6.04%Corp MAYTAG CORP MEDTERM NTS BK ENT 92 5 15-May-15 6.20%Corp AMERICAN ELEC PWR INC 96.81 5.25 1-Jun-15 5.72%Corp CENTERPOINT ENERGY INC 106.09 6.85 1-Jun-15 5.95%


56/162

Corp HARRAHS OPER INC 95.25 5.625 1-Jun-15 6.34%Corp CENTEX CORP 93.66 5.25 15-Jun-15 6.19%Corp CONSTELLATION ENERGY GROUP INC 92.05 4.55 15-Jun-15 5.71%

Corp EXELON CORP 94.74 4.9 15-Jun-15 5.66%Corp ONEOK INC NEW 95.6 5.2 15-Jun-15 5.84%Corp COX COMMUNICATIONS INC NEW 95.96 5.5 1-Oct-15 6.08%

Corp TELECOM ITALIA CAP 94.47 5.25 1-Oct-15 6.05%Corp NEWS AMER HLDGS INC 112.59 7.6 11-Oct-15 5.81%Corp EQUITY ONE 95.92 5.375 15-Oct-15 5.96%Corp PENNEY JC INC MTN BE 106.33 6.875 15-Oct-15 5.97%Corp COMCAST CORP NEW 99.4 5.85 15-Nov-15 5.93%Corp HARRAHS OPER INC 100.5 6.5 1-Jun-16 6.43%Corp ROYAL CARIBBEAN CRUISES LTD 102.12 7.25 15-Jun-16 6.95%Corp WHIRLPOOL CORP 102.83 6.5 15-Jun-16 6.11%

Corp PENNEY J C INC 113.86 7.65 15-Aug-16 5.80%


57/162

Current

yield

Fitch

rating

CallableYears to

maturity2.742 BBB No 0.59


58/162

3.879 BBB No 1.307.419 BBB No 1.316.863 BBB No 1.35




6.19 BBB No 1.486.4 BBB No 1.48

6.227 BBB No 1.529.069 BBB No 1.524.117 BBB No 1.526.519 BBB No 1.52

6.647 BBB No 1.527.278 BBB No 1.523.649 BBB No 1.528.002 BBB No 1.528.558 BBB No 1.526.733 BBB No 1.56

6.181 BBB No 1.564.488 BBB No 1.567.117 BBB No 1.566.522 BBB No 1.595.195 BBB No 1.646.419 BBB No 1.646.066 BBB No 1.64


5.564 BBB No 1.763.564 BBB No 1.76



4.27 BBB No 2.016.958 BBB No 2.018.305 BBB No 2.066.897 BBB No 2.065.653 BBB No 2.14


59/162


5.633 BBB No 2.186.85 BBB No 2.18

3.958 BBB No 2.18

6.991 BBB No 2.197.535 BBB No 2.235.798 BBB No 2.236.869 BBB No 2.235.776 BBB No 2.235.517 BBB No 2.246.001 BBB No 2.275.935 BBB No 2.27



5 BBB No 2.436.511 BBB No 2.43





6.51 BBB No 2.72




60/162

7.532 BBB No 2.934.811 BBB No 2.93

6.53 BBB No 2.93









7.914 BBB No 3.855.465 BBB No 3.895.151 BBB No 3.937.366 BBB No 3.986.824 BBB No 3.987.165 BBB No 3.985.039 BBB No 4.017.187 BBB No 4.025.019 BBB No 4.02


61/162




4.84 BBB No 4.185.432 BBB No 4.18





4.43 BBB No 4.426.629 BBB No 4.43



5.538 BBB No 4.525.975 BBB No 4.54




62/162







6.27 BBB No 4.93





63/162




5.65 BBB No 5.816.493 BBB No 5.81











64/162




6.58 BBB No 7.355.652 BBB No 7.35



4.89 BBB No 7.686.246 BBB No 7.81





5.19 BBB No 8.485.443 BBB No 8.52



65/162



5.557 BBB No 9.156.75 BBB No 9.17


6.719 BBB No 10.02


66/162

.0001x 3- 0.0023x 2+ 0.0152x + 0.0221R = 0.8479

6 7 8 9 10 11turity

s, 11Aug06


67/162

12

3456

789101112131415

1617181920212223242526

27

28293031

A B C

Average time to maturity (years) 5

Yield 5.31%


68/162

1

2

3

4

5

67

89101112131415

1617181920212223242526

27

2829303132

A B C

Stock price, end 2005 27.75

Current dividend, D0 0.92


69/162

1234

56

7

8

9

10

1112

1314

1516

17181920212223242526

A B C D

Shares outstanding 1,669,880,755Share price, end 2005 27.75Equity value, E 46,339,190,951


70/162

1234

56

7

8

9

10

1112

1314

1516

17181920212223242526

E F

)

Cash flow to

equity holders395,000,000


71/162

12

34

5

678

9

10

11

121314

15

A B

Market price/earnings multiple, December 2005 18

Equity cash flow payout ratio 50.00%Anticipated growth of equity cash flow 6.00%


Kraft cost of equity calculationsKraft beta 0.4700

Kraft tax rate, TC 29.37%


Kraft cost of equity, rE,Kraft Classic CAPM 6.82% Tax-adjusted CAPM 6.05%

COMPUTING THE COST OF EQUITY rE

MARKET PRICE/EARNINGS MULTIP



72/162

12

34

5

678

9

10

11

121314

15

C


73/162

1

23456

7

8

9

10

111213

14

15

16

171819

20

21

22

232425

26

27

28

29

A B

Shares outstanding 1,669,880,755Share price, end 2005 27.75Equity value, E 46,339,190,951Net debt, D 10,884,000,000

WACC based on Gordon per-share dividends a

Cost of equity, rE 16.79%

Cost of debt, rD 5.50%

Tax rate, TC 29.37%

WACC 14.33%

WACC based on Gordon equity payouts and in



Tax rate, TC 29.37%

WACC 12.45%

WACC based on classic CAPM and interest fro



Tax rate, TC 29.37%

WACC 6.26%

WACC based on tax-adjusted CAPM and intere



Tax rate, TC 29.37%

WACC 5.64%

COMPUTIN


74/162

1

23456

7

8

9

10

111213

14

15

16

171819

20

21

22

232425

26

27

28

29

C

nd interest from financial statements


75/162


76/162

1234

56

7

8

9

10

1112

1314

1516

1718192021

A B C D

Shares outstanding 354,820,000Share price, 11Aug06 13.45Equity value, E 4,772,329,000


77/162

1234

56

7

8

9

10

1112

1314

1516

1718192021

E F

)

Cash flow to

equity holders49,000,000


78/162

12

34

5

678

9

10

11

121314

15

A B

Market price/earnings multiple, August 2006 17



Tyson cost of equity calculationsTyson beta 0.20

Tyson tax rate, TC 29.55%


Tyson cost of equity, rE,Kraft Classic CAPM 5.77% Tax-adjusted CAPM 4.60%

COMPUTING THE COST OF EQUITY rE

MARKET PRICE/EARNINGS MULTIP



79/162

12

34

5

678

9

10

11

121314

15

C


80/162

1

23456

78910

A B C D

2005 2004Cash and cash equivalents 40,000,000 33,000,000Current debt 126,000,000 338,000,000Long term debt 2,869,000,000 3,024,000,000Net debt 2,955,000,000 3,329,000,000


81/162

1

23456

7

8

9

10

111213

14

15

16

171819

20

21

22

232425

26

27

28

29

3031

A B

Shares outstanding 354,820,000Share price, end 2005 13.45Equity value, E 4,772,329,000Net debt, D 2,955,000,000




Tax rate, TC 29.55%

WACC 2.68%




Tax rate, TC 29.55%

WACC 4.53%




Tax rate, TC 29.55%

WACC 5.51%




Tax rate, TC 29.55%

WACC 4.79%

Estimated WACC? 4.94%

COMPUTIN


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1

23456

7

8

9

10

111213

14

15

16

171819

20

21

22

232425

26

27

28

29

3031

C

nd interest from financial statements


83/162

12

3

4

5678

910

111213141516171819

20212223242526

272829

303132333435363738

39

A B C D

Share price, 31jan06 50.69

Current dividend, D0

0.60


84/162

12

34

56

7

89

10

1112131415

1617

A B C D

Shares outstanding 12,536,000

Share price, 31jan06 50.69Equity value, E 635,449,840


85/162

12

34

56

7

89

10

1112131415

1617

E F

Cash flow to

equity holders2,448,0001,354,0002,523,0003,637,0003,862,000

3,904,0009.78%


86/162

12

34

5

6

78

9

10

11

121314

15

A B C

Market price/earnings multiple, December 2005 18




87/162

1

234

5678910111213

14151617

1819

A B C

2006/01/31 2005/01/31Cash and cash equivalents 35,493,000 30,482,000Marketable securities 23,004,000 1,503,000

Notes payable to banks 4,741,000 2,461,000Current portion of long-term debt 12,681,000 12,916,000Long-term debt, net of current portion 12,500,000 25,187,000Total debt 29,922,000 40,564,000

Interest expense 2,741,000 3,570,000Interest income 979,000 562,000

Interest cost 7.78%


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1

234

5678910111213

14151617

1819

D

(B10:C10)(B3:C3)


89/162

123

456

7

8

9

10

111213

14

1516

171819

20

21

22

232425

26

27

28

29

3031

A B

Shares outstanding 12,536,000Share price, end 2005 50.69

Equity value, E 635,449,840Net debt, D -28,575,000




Tax rate, TC 32.42%

WACC 18.71%



Cost of debt, rD 7.78%Tax rate, TC 32.42%

WACC 10.70%




Tax rate, TC 32.42%

WACC 11.85%


Cost of equity, rE

12.59%


Tax rate, TC 32.42%

WACC 12.94%

Estimated WACC? 11.83%

COMPUTING

The compa


90/162

123

456

7

8

9

10

111213

14

1516

171819

20

21

22

232425

26

27

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29

3031

C


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123

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1112131415

1617181920

21222324252627282930

31

A B C

Year Dividend1989 3.00

1990 3.001991 1.951992 1.601993 1.601994 1.331995 1.231996 1.46

1997 1.641998 22.81

Growth rate, 1989-1997 -7.27%


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1

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2021

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3233

3435363738394041

424344454647

A B C D E F G

Date price Date priceMay-96 669.12 May-96 46.25Jun-96 670.63 0.23% Jun-96 38.75 -17.69%Nov-96 757.02 7.08% Nov-96 16.25 -73.09%

Dec-96 740.74 -2.17% Dec-96 13.13 -21.36%Jan-97 786.16 5.95% Jan-97 17.50 28.77%Feb-97 790.82 0.59% Feb-97 22.50 25.13%Mar-97 757.12 -4.35% Mar-97 25.63 13.01%Apr-97 801.34 5.68% Apr-97 30.00 15.76%May-97 848.28 5.69% May-97 25.00 -18.23%Jun-97 885.14 4.25% Jun-97 24.38 -2.53%Jul-97 954.31 7.52% Jul-97 26.25 7.41%Aug-97 899.47 -5.92% Aug-97 20.94 -22.61%

Sep-97 947.28 5.18% Sep-97 22.50 7.20%Oct-97 914.62 -3.51% Oct-97 10.16 -79.54%

Nov-97 955.4 4.36% Nov-97 12.50 20.76%Dec-97 970.43 1.56% Dec-97 6.41 -66.85%Jan-98 980.28 1.01% Jan-98 5.94 -7.60%Feb-98 1049.34 6.81% Feb-98 4.38 -30.54%Mar-98 1101.75 4.87% Mar-98 4.38 0.00%Apr-98 1111.75 0.90% Apr-98 2.19 -69.31%May-98 1090.82 -1.90% May-98 2.03 -7.41%Jun-98 1133.84 3.87% Jun-98 1.00 -70.86%Jul-98 1120.67 -1.17% Jul-98 1.00 0.00%Aug-98 957.28 -15.76% Aug-98 0.63 -47.00%

Sep-98 1017.01 6.05% Sep-98 0.38 -51.08%Oct-98 1098.67 7.72% Oct-98 0.25 -40.55%

Nov-98 1163.63 5.74% Nov-98 0.38 40.55%Dec-98 1229.23 5.48% Dec-98 0.25 -40.55%Jan-99 1279.64 4.02% Jan-99 0.38 40.55%Feb-99 1238.33 -3.28% Feb-99 1.06 104.15%Mar-99 1286.37 3.81% Mar-99 0.97 -9.23%

Return sigma (monthly) 4.98% 39.09%Return sigma (annual) 17.27% 135.41%

Big City's beta -0.0542


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H


94/162

1

23

4

5

6

78910

111213

14

A B C

Big City's beta -0.0542

Risk-free rate, rf 4.29%




95/162

123

4

5

6

789

10111213

14

A B C

Big City's beta 1.3000

Risk-free rate, rf 4.29%




96/162

DateAlcoa

AA

American

International

AIG

American

Express

AXP

Boeing

BA

Citigroup

C

Caterpillar

CAT

4/2/2002 30.54 67.13 34.27 40.92 34.28 24.705/1/2002 31.54 65.04 35.52 39.27 34.33 23.646/3/2002 29.89 66.31 30.35 41.44 30.81 22.147/1/2002 24.53 62.12 29.53 38.23 26.66 20.388/1/2002 22.75 61.03 30.20 34.29 28.07 19.909/3/2002 17.50 53.20 26.11 31.57 25.41 16.97

10/1/2002 20.00 60.84 30.53 27.52 31.83 18.7911/1/2002 23.32 63.37 32.68 31.67 33.49 22.9612/2/2002 20.79 56.31 29.74 30.68 30.31 21.03

1/2/2003 18.04 52.68 29.89 29.38 29.75 20.392/3/2003 18.86 47.98 28.25 25.77 28.88 21.793/3/2003 17.82 48.18 27.96 23.43 29.84 22.814/1/2003 21.23 56.46 31.93 25.51 34.00 24.54

5/1/2003 22.79 56.39 35.14 28.85 35.71 24.332/1/2007 33.41 67.11 56.72 87.26 50.37 64.433/1/2007 33.90 67.22 56.25 88.91 51.34 67.034/2/2007 34.59 67.23 55.96 90.50 51.57 67.63

PRICE DATA FOR DOW-JONES INDUSTRIAL 30


97/162

DuPont

DD

Disney

DIS

General

Electric

GE

General

Motors

GM

Home Depot

HD

Honeywell

HON

Hewlett

Packard

HPQ

37.72 22.04 27.56 50.54 43.85 32.59 15.9239.29 21.79 27.20 49.33 39.42 35.00 17.7837.92 17.97 25.53 42.43 34.77 31.46 14.3035.80 16.86 28.30 36.95 29.24 28.89 13.2434.72 14.91 26.50 38.43 31.18 26.90 12.5631.07 14.40 21.82 31.24 24.75 19.45 10.9835.53 15.88 22.35 26.70 27.38 21.50 14.8738.75 18.85 24.00 32.35 25.03 23.55 18.3336.82 15.70 21.72 30.03 22.83 21.73 16.41

32.89 16.85 20.64 29.60 19.86 22.13 16.4632.16 16.42 21.62 27.90 22.29 20.89 14.9834.08 16.39 22.92 27.78 23.21 19.50 14.7737.30 17.97 26.47 29.78 26.81 21.54 15.49

37.25 18.92 25.80 29.60 30.96 24.10 18.5350.73 34.25 34.91 31.90 39.36 46.40 39.2749.43 34.43 35.36 30.64 36.74 46.06 40.1449.32 34.91 35.02 31.90 38.02 47.26 41.80

OMPONENTS, APRIL 2002 - APRIL 2007


98/162

International

Business

Machines

IBM

Intel

INTC

Johnson &

Johnson

JNJ

JP Morgan

Chase

JPM

Coca Cola

KO

McDonalds

MCD

3M Company

MMM

79.91 27.16 57.99 28.87 49.46 25.90 56.7176.91 26.24 55.90 29.57 49.51 27.31 56.8368.83 17.36 47.62 27.90 50.09 25.95 55.7267.30 17.85 47.93 20.75 44.67 22.57 57.0172.22 15.86 49.67 21.95 45.61 21.67 56.8855.87 13.21 49.46 15.79 43.06 16.11 50.0675.63 16.46 53.73 17.56 41.73 16.52 57.7983.43 19.88 52.32 21.30 41.16 17.11 59.4074.39 14.83 49.29 20.31 39.54 14.87 56.40

75.06 14.91 49.19 20.03 36.49 13.17 56.9874.97 16.45 48.33 19.46 36.27 12.59 57.6575.43 15.52 53.32 20.35 36.72 13.37 59.7981.65 17.54 51.93 25.55 36.65 15.81 57.96

84.82 19.87 50.30 28.60 41.34 17.32 58.4792.94 19.86 62.93 49.04 46.35 43.69 74.0894.26 19.13 60.26 48.04 48.00 45.05 76.4396.52 19.58 61.55 48.77 49.52 45.78 76.75


99/162

Altria Group

MO

Merck

MRK

Microsoft

MSFT

Pfizer

PFE

Procter

Gamble

PG

AT&T

T

United

Technology

UTX

31.75 42.71 22.49 31.96 40.80 24.27 32.4133.40 44.88 21.91 30.53 40.48 26.79 31.9225.80 40.06 23.54 30.88 40.68 23.83 31.4727.20 39.24 20.65 28.54 40.75 21.80 32.2129.54 39.97 21.12 29.30 40.59 19.49 27.6323.23 36.43 18.82 25.71 40.92 15.84 26.2924.40 43.23 23.01 28.14 40.68 20.48 28.7022.58 47.35 24.82 28.04 38.88 22.75 29.1824.65 45.40 22.25 27.19 39.53 21.64 28.94

23.03 44.42 20.42 27.13 39.55 19.68 29.7023.50 42.30 20.46 26.65 37.83 16.75 27.4718.55 44.24 20.90 27.85 41.16 16.16 27.1019.04 46.99 22.08 27.48 41.71 19.10 28.99

25.57 44.89 21.25 27.85 42.63 20.82 32.1462.62 43.77 28.17 24.96 63.49 36.47 65.6465.90 44.17 27.87 25.26 63.16 39.07 65.0070.75 45.54 28.55 25.84 63.00 39.27 64.93


100/162

Verizon

VZ

Walmart

WMT

Exxon Mobile

XOMDJI S&P500

31.06 53.03 35.84 9946.22 1076.9233.30 51.36 35.84 9925.25 1067.1431.09 52.29 36.72 9243.26 989.8225.81 46.75 32.99 8736.59 911.6224.25 50.83 32.02 8663.50 916.0721.46 46.87 28.81 7591.93 815.2829.89 50.97 30.40 8397.03 885.7633.15 51.31 31.64 8896.09 936.3130.67 48.15 31.77 8341.63 879.82

30.57 45.57 31.05 8053.81 855.7027.62 45.81 31.14 7891.08 841.1528.23 49.68 31.99 7992.13 848.1830.18 53.78 32.22 8480.09 916.92

30.56 50.24 33.56 8850.26 963.5937.00 48.08 71.68 12268.63 1406.8237.52 46.95 75.45 12354.35 1420.8638.00 48.27 77.22 12560.83 1443.76


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1314151617181920212223

24

25262728293031323334

3536

3738394041424344

45

A B C D E F G H

Alcoa

AA

American

International

AIG

American

Express

AXP

Boeing

BA

Citigroup

C

Caterpillar

CAT

DuPont

DD

Alpha -0.0074 -0.0058 0.0020 0.0097 0.0009 0.0100 -0.0007

Beta 1.9446 1.1873 1.2615 0.7304 1.2086 1.3915 1.0488

R-squared 0.5646 0.3906 0.6987 0.1442 0.5050 0.4328 0.4114

T-Alpha -0.9545 -0.8548 0.5325 1.1917 0.1653 1.3765 -0.1147

T-Beta 8.6724 6.0965 11.5982 3.1260 7.6922 6.6532 6.3675

Date5/1/2002 3.22% -3.16% 3.58% -4.12% 0.15% -4.39% 4.08%6/3/2002 -5.37% 1.93% -15.73% 5.38% -10.82% -6.56% -3.55%7/1/2002 -19.76% -6.53% -2.74% -8.06% -14.47% -8.28% -5.75%8/1/2002 -7.53% -1.77% 2.24% -10.88% 5.15% -2.38% -3.06%9/3/2002 -26.24% -13.73% -14.55% -8.26% -9.96% -15.93% -11.11%

10/1/2002 13.35% 13.42% 15.64% -13.73% 22.53% 10.19% 13.41%11/1/2002 15.36% 4.07% 6.81% 14.05% 5.08% 20.04% 8.68%12/2/2002 -11.48% -11.81% -9.43% -3.18% -9.98% -8.78% -5.11%

1/2/2003 -14.19% -6.66% 0.50% -4.33% -1.86% -3.09% -11.29%

2/3/2003 4.45% -9.35% -5.64% -13.11% -2.97% 6.64% -2.24%3/3/2003 -5.67% 0.42% -1.03% -9.52% 3.27% 4.57% 5.80%4/1/2003 17.51% 15.86% 13.28% 8.51% 13.05% 7.31% 9.03%5/1/2003 7.09% -0.12% 9.58% 12.30% 4.91% -0.86% -0.13%6/2/2003 3.53% -4.68% 0.34% 11.23% 4.25% 6.52% -1.19%7/1/2003 8.52% 15.13% 5.73% -3.56% 5.36% 19.84% 5.37%8/1/2003 3.37% -7.48% 1.99% 12.65% -3.28% 6.27% 2.62%9/2/2003 -8.76% -3.08% 0.00% -8.53% 4.85% -4.27% -11.19%

10/1/2003 18.77% 5.27% 4.29% 11.43% 4.82% 6.73% 0.98%11/3/2003 4.33% -4.85% -2.62% 0.19% -0.79% 3.72% 3.47%

12/1/2003 14.70% 13.54% 5.57% 9.32% 3.17% 8.78% 10.15%1/2/2004 -10.61% 4.68% 7.21% -0.93% 2.71% -5.65% -4.44%

2/2/2004 9.65% 6.35% 3.02% 4.20% 1.58% -3.10% 3.46%3/1/2004 -7.73% -3.56% -2.79% -5.44% 2.82% 4.31% -6.58%4/1/2004 -12.05% 0.41% -5.76% 3.86% -6.41% -1.26% 1.71%5/3/2004 2.26% 2.29% 3.52% 7.50% -3.51% -3.10% 1.43%6/1/2004 5.40% -2.70% 1.52% 10.94% 0.14% 5.30% 2.77%7/1/2004 -3.09% -0.88% -2.22% -0.68% -4.40% -7.27% -3.54%8/2/2004 1.57% 0.82% -0.47% 3.26% 5.50% -1.09% -0.61%9/1/2004 3.68% -4.56% 2.84% -1.16% -5.42% 10.11% 1.28%

10/1/2004 -3.32% -11.32% 3.32% -3.38% 1.46% 0.62% 0.18%

RETURN DATA, ALPHA, BETA, R-SQU

For Dow-Jones 30 Industrials, April 2002 -

=tintercept(B16:B75,$AH$16:$AH$75)=tslope(B16:B75,$AH$16:$AH$75)

=INTERCEPT(B16:B75,$AH$16:$AH$75)=SLOPE(B16:B75,$AH$16:$AH$75)

=RSQ(B16:B75,$AH$16:$AH$75)


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4647484950

515253

545556575859606162

63646566676869707172

737475

A B C D E F G H

11/1/2004 4.94% 4.24% 4.84% 7.49% 0.86% 12.83% 6.33%12/1/2004 -7.87% 3.71% 1.19% -3.42% 7.39% 6.29% 7.92%1/3/2005 -6.24% 0.94% -5.29% -2.29% 1.80% -8.57% -3.10%2/1/2005 8.97% 0.77% 1.48% 8.76% -1.87% 6.46% 12.10%3/1/2005 -5.55% -18.50% -5.04% 6.15% -6.01% -3.86% -3.95%

4/1/2005 -4.60% -8.60% 2.58% 1.80% 5.35% -3.32% -8.40%5/2/2005 -6.31% 8.86% 2.14% 7.51% 0.32% 6.66% -0.50%6/1/2005 -3.67% 4.70% -0.93% 3.24% -1.89% 1.26% -7.83%

7/1/2005 7.10% 3.55% 3.27% 0.02% -5.09% 12.81% -0.77%8/1/2005 -4.08% -1.43% 0.44% 1.90% 0.61% 2.89% -6.68%9/1/2005 -9.25% 4.56% 3.90% 1.38% 3.93% 5.71% -1.02%

10/3/2005 -0.55% 4.49% -0.77% -5.00% 0.58% -10.64% 6.22%11/1/2005 12.69% 3.54% 3.25% 5.74% 6.84% 9.43% 3.40%12/1/2005 7.61% 1.60% 0.08% 2.96% -0.04% -0.02% -0.59%1/3/2006 6.32% -4.13% 2.15% -2.80% -4.09% 16.54% -8.20%2/1/2006 -6.71% 1.37% 2.69% 6.64% 0.61% 7.36% 3.66%3/1/2006 4.16% -0.18% -2.49% 6.97% 1.82% -1.75% 4.76%

4/3/2006 10.01% -1.28% 2.59% 6.84% 6.63% 5.64% 4.38%5/1/2006 -5.85% -6.82% 1.01% 0.10% -1.31% -3.75% -2.80%6/1/2006 2.00% -2.93% -2.10% -1.63% -2.15% 2.08% -2.22%7/3/2006 -7.74% 2.71% -1.94% -5.64% 0.13% -4.54% -4.77%8/1/2006 -4.16% 5.32% 0.93% -2.92% 3.15% -6.59% 1.72%9/1/2006 -1.93% 3.75% 6.52% 5.14% 0.64% -0.82% 6.94%

10/2/2006 3.06% 1.37% 3.31% 1.27% 0.98% -7.62% 6.67%11/1/2006 8.04% 4.82% 1.57% 10.66% -0.16% 2.15% 3.23%12/1/2006 -3.62% 1.88% 3.27% 0.35% 11.62% -1.14% 3.73%1/3/2007 7.89% -4.58% -3.88% 0.81% -1.02% 4.88% 1.72%

2/1/2007 3.38% -1.73% -2.34% -2.22% -8.05% 0.56% 3.06%3/1/2007 1.46% 0.16% -0.83% 1.87% 1.91% 3.96% -2.60%4/2/2007 2.01% 0.01% -0.52% 1.77% 0.45% 0.89% -0.22%


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1314151617181920212223

24

25262728293031323334

3536

3738394041424344

45

I J K L M N O P

Disney

DIS

General

Electric

GE

General

Motors

GM

Home

Depot

HD

Noneywell

HON

Hewlett

Packard

HPQ

International

Business

Machines

IBM

Intel

INTC

0.0017 0.0003 -0.0140 -0.0098 -0.0018 0.0071 -0.0047 -0.01591.2131 0.7474 1.2860 1.5274 1.6276 1.8433 1.6008 2.13040.3699 0.2533 0.1869 0.4791 0.6100 0.5260 0.5540 0.44730.2410 0.0583 -1.1417 -1.3563 -0.2964 0.8885 -0.7142 -1.4703

5.8350 4.4352 3.6511 7.3042 9.5241 8.0223 8.4877 6.8513

-1.14% -1.31% -2.42% -10.65% 7.13% 11.05% -3.83% -3.45%-19.27% -6.34% -15.07% -12.55% -10.66% -21.78% -11.10% -41.31%

-6.38% 10.30% -13.83% -17.32% -8.52% -7.70% -2.25% 2.78%-12.29% -6.57% 3.93% 6.42% -7.14% -5.27% 7.06% -11.82%

-3.48% -19.43% -20.71% -23.10% -32.43% -13.44% -25.67% -18.28%9.78% 2.40% -15.70% 10.10% 10.02% 30.33% 30.28% 22.00%

17.15% 7.12% 19.20% -8.97% 9.11% 20.92% 9.82% 18.88%-18.29% -9.98% -7.44% -9.20% -8.04% -11.06% -11.47% -29.31%

7.07% -5.10% -1.44% -13.94% 1.82% 0.30% 0.90% 0.54%

-2.59% 4.64% -5.91% 11.54% -5.77% -9.42% -0.12% 9.83%-0.18% 5.84% -0.43% 4.04% -6.89% -1.41% 0.61% -5.82%9.20% 14.40% 6.95% 14.42% 9.95% 4.76% 7.92% 12.24%5.15% -2.56% -0.61% 14.39% 11.23% 17.92% 3.81% 12.47%0.47% 0.58% 1.87% 2.11% 2.42% 9.17% -6.49% -0.05%

10.43% -0.85% 3.90% -5.96% 5.21% -0.59% -1.53% 17.93%-6.66% 3.89% 10.67% 3.01% 3.14% -6.02% 1.13% 13.92%-1.63% 1.45% -0.40% -0.75% -9.57% -2.50% 7.42% -3.81%11.56% -2.73% 4.17% 15.19% 15.01% 14.16% 1.29% 17.98%

1.95% -1.18% 1.43% -0.85% -2.43% -2.56% 1.37% 1.86%

1.96% 8.41% 22.17% -3.32% 11.88% 5.83% 2.34% -4.56%2.87% 8.21% -7.21% -0.06% 7.72% 3.52% 6.82% -4.88%

9.99% -2.76% -2.18% 2.35% -2.47% -4.66% -2.63% -4.27%-5.95% -6.33% -1.81% 3.03% -3.50% 0.96% -4.94% -7.12%-8.19% -1.90% 0.34% -5.97% 2.12% -14.80% -4.08% -5.57%1.90% 3.84% -3.24% 2.05% -2.00% 7.50% 0.68% 10.55%8.24% 4.63% 2.60% -1.78% 8.34% -0.29% -0.49% -3.38%

-9.88% 2.59% -7.70% -4.31% 2.66% -4.61% -1.23% -12.38%-2.80% -1.40% -3.14% 8.33% -3.91% -11.86% -2.56% -13.40%0.46% 2.98% 2.80% 6.98% -0.32% 5.12% 1.23% -5.95%

11.17% 1.58% -9.71% 4.67% -6.26% -0.49% 4.57% 10.40%

RED

pril 2007


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6.40% 3.58% 1.39% 1.82% 5.31% 6.92% 5.08% 0.70%4.23% 3.78% 3.76% 2.33% 0.21% 5.16% 4.50% 4.45%2.93% -1.03% -8.48% -3.52% 1.59% -6.82% -5.38% -4.13%

-2.42% -1.97% -1.86% -3.05% 5.92% 5.99% -0.72% 6.98%2.77% 2.41% -19.31% -4.28% -2.03% 5.74% -1.30% -3.20%

-8.44% 0.38% -9.67% -7.82% -3.95% -6.93% -17.93% 1.24%3.86% 0.76% 18.35% 10.67% 1.85% 9.50% -0.82% 14.00%

-8.61% -4.51% 7.51% -0.90% 1.11% 4.69% -1.80% -3.55%

1.81% -0.43% 7.99% 11.20% 6.98% 4.61% 11.75% 4.20%-1.77% -2.63% -5.98% -7.36% -2.03% 12.01% -3.22% -5.07%-4.30% 0.84% -11.07% -5.58% -2.07% 5.31% -0.49% -4.25%1.01% 0.71% -11.09% 7.34% -9.20% -4.04% 2.05% -4.79%2.28% 5.20% -20.57% 2.03% 7.17% 5.66% 8.47% 13.05%

-2.90% -1.18% -11.99% -3.16% 1.92% -3.30% -7.83% -6.64%5.45% -6.80% 21.41% 0.18% 3.10% 8.53% -1.11% -16.06%

10.08% 1.10% -15.76% 3.86% 6.92% 5.09% -1.06% -2.69%-0.36% 5.67% 4.62% 0.70% 4.35% 0.52% 2.74% -5.66%

0.25% -0.56% 7.30% -5.76% -0.62% -1.33% -0.16% 2.59%8.70% -0.96% 17.23% -4.63% -2.63% -0.28% -2.65% -9.77%-1.67% -3.12% 10.10% -5.90% -2.17% -1.92% -3.93% 5.27%-1.05% -0.81% 7.88% -3.09% -4.04% 0.73% 0.76% -5.38%-0.14% 4.11% -9.13% -1.21% 0.65% 13.60% 4.90% 8.90%4.17% 4.29% 13.07% 6.04% 5.46% 0.58% 1.19% 4.98%1.78% -0.55% 4.88% 2.89% 2.95% 5.43% 11.93% 3.66%4.91% 0.49% -17.09% 2.30% 2.56% 1.85% -0.12% 0.80%4.54% 6.06% 4.97% 5.61% 5.13% 4.50% 5.54% -5.55%2.59% -3.16% 6.69% 1.42% 0.97% 4.94% 2.03% 3.46%

-2.65% -2.43% -2.23% -2.86% 2.07% -9.51% -6.16% -4.86%0.52% 1.28% -4.03% -6.89% -0.74% 2.19% 1.41% -3.74%1.38% -0.97% 4.03% 3.42% 2.57% 4.05% 2.37% 2.33%


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12

345

6789101112

1314151617181920212223

24

25262728293031323334

3536

3738394041424344

45

Q R S T U V W X Y

Johnson

&

Johnson

JNJ

JP

Morgan

Chase

JPM

Coca

Cola

KO

McDonal

ds

MCD

3M

Company

MMM

Altria

Group

MO

Merck

MRK

Microsoft

MSFT

Pfizer

PFE

-0.0007 -0.0002 -0.0028 0.0019 0.0016 0.0084 -0.0028 -0.0007 -0.00670.3475 1.8394 0.5737 1.5627 0.7058 1.0089 0.8005 0.9650 0.65610.0890 0.5957 0.1974 0.5299 0.1985 0.1569 0.1211 0.3067 0.1657

-0.1391 -0.0360 -0.5281 0.2771 0.2469 0.7906 -0.2893 -0.1117 -1.0060

2.3806 9.2439 3.7774 8.0849 3.7902 3.2850 2.8276 5.0657 3.3935

-3.67% 2.40% 0.10% 5.30% 0.21% 5.07% 4.96% -2.61% -4.58%-16.03% -5.81% 1.16% -5.11% -1.97% -25.82% -11.36% 7.18% 1.14%

0.65% -29.61% -11.45% -13.96% 2.29% 5.28% -2.07% -13.10% -7.88%3.57% 5.62% 2.08% -4.07% -0.23% 8.25% 1.84% 2.25% 2.63%

-0.42% -32.94% -5.75% -29.65% -12.77% -24.03% -9.27% -11.53% -13.07%8.28% 10.62% -3.14% 2.51% 14.36% 4.91% 17.11% 20.10% 9.03%

-2.66% 19.31% -1.38% 3.51% 2.75% -7.75% 9.10% 7.57% -0.36%-5.97% -4.76% -4.02% -14.03% -5.18% 8.77% -4.21% -10.93% -3.08%

-0.20% -1.39% -8.03% -12.14% 1.02% -6.80% -2.18% -8.58% -0.22%

-1.76% -2.89% -0.60% -4.50% 1.17% 2.02% -4.89% 0.20% -1.79%9.83% 4.47% 1.23% 6.01% 3.64% -23.65% 4.48% 2.13% 4.40%

-2.64% 22.76% -0.19% 16.76% -3.11% 2.61% 6.03% 5.49% -1.34%-3.19% 11.28% 12.04% 9.12% 0.88% 29.49% -4.57% -3.83% 1.34%-5.01% 3.94% 2.30% 16.37% 1.96% 11.02% 9.21% 4.10% 9.61%0.19% 3.53% -3.15% 4.22% 8.33% -12.72% -9.12% 2.94% -2.34%

-3.89% -2.40% -3.27% -2.62% 2.06% 2.98% -3.90% 0.44% -10.44%-0.13% 0.30% -0.81% 4.90% -3.09% 7.72% 1.33% 4.69% 1.54%1.64% 5.45% 7.70% 6.02% 13.28% 5.97% -13.45% -5.61% 3.94%

-1.59% -1.39% 0.70% 4.03% 0.64% 11.17% -8.62% -1.64% 6.52%

4.67% 3.69% 8.74% -3.17% 7.31% 5.82% 13.81% 6.25% 5.09%3.36% 6.64% -3.02% 3.58% -7.24% 2.14% 2.98% 1.05% 3.62%

1.35% 5.31% 1.45% 9.50% -0.91% 3.47% 1.01% -4.17% 0.51%-6.11% 2.26% 1.19% 0.94% 4.81% -4.36% -7.68% -6.23% -4.48%6.33% -10.16% 0.54% -4.81% 5.48% 1.67% 6.16% 4.74% 2.02%3.58% -2.02% 1.53% -3.10% -1.81% -14.37% 0.65% 0.35% -0.71%

-0.02% 5.10% -1.23% -1.50% 6.25% 5.67% 1.19% 8.54% -3.05%-0.78% -2.90% -14.05% 5.61% -8.88% -5.00% -4.64% -0.28% -7.00%5.50% 5.85% 1.92% -1.80% 0.45% 2.78% -0.85% -3.96% 2.73%

-3.10% 0.39% -10.44% 3.68% -2.95% -2.49% -30.07% 1.30% -6.57%

3.59% -2.06% 1.51% 3.95% -3.04% 2.95% -5.29% 1.12% -5.52%


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3.74% -2.48% -2.75% 7.12% 3.01% 17.11% -11.10% 6.63% -3.56%5.01% 3.55% 5.78% 4.23% 3.06% 7.29% 15.10% -0.35% -3.24%2.00% -3.52% -0.38% 1.01% 2.76% 4.37% -13.59% -1.67% -10.68%1.82% -2.13% 3.13% 2.11% 0.00% 2.81% 12.21% -4.04% 9.18%2.35% -5.46% -2.03% -6.02% 2.06% 0.71% 3.29% -4.00% -0.08%

2.16% 3.52% 4.17% -6.05% -11.38% -0.60% 4.61% 4.57% 3.37%-1.75% 0.75% 2.69% 5.41% 0.78% 3.25% -4.37% 2.29% 3.34%-3.18% -1.23% -6.02% -10.91% -5.84% -2.69% -4.01% -3.80% -1.15%

-1.61% 0.45% 4.71% 11.65% 3.67% 3.49% 0.84% 3.04% -3.98%-0.39% -3.62% 0.53% 4.01% -4.68% 5.42% -8.20% 6.99% -3.23%-0.16% 0.12% -1.22% 3.14% 3.05% 5.28% -3.68% -6.23% -2.01%-1.05% 8.63% -0.95% -5.78% 3.51% 1.81% 3.65% -0.12% -13.84%-0.88% 4.36% 0.44% 8.89% 3.77% -3.05% 5.36% 7.72% -1.67%-2.70% 3.68% -5.72% -0.36% -1.26% 3.66% 7.89% -5.67% 9.53%-4.36% 1.00% 2.61% 3.76% -6.33% -3.23% 8.11% 7.35% 9.64%0.77% 3.44% 1.42% -0.29% 1.77% -0.62% 1.03% -4.32% 2.90%2.68% 1.23% 0.49% -1.60% 2.81% -0.37% 2.17% 1.28% -4.96%

-1.04% 9.39% 0.22% 0.62% 12.12% 3.20% -2.33% -11.95% 1.

financial modeling chapter 2

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