Financial Modeling Chapter 2

A
1
THE GORDON MODEL COST OF EQUITY
2 Current share price, P0
60
3 Current dividend, D0
3
4 Anticipated dividend growth rate
12%
5 Gordon model cost of equity, rE
17.60% <-- =B3*(1+B4)/B2+B4
1
KELLOGG DIVIDENDS, MAY1996 - MAY2006
2 Dividend growth rate, quarterly
3
last 5 years
0.47% <-- =(B51/B31)^(1/20)-1
4
last 10 years
0.89% <-- =(B51/B11)^(1/40)-1
5
6 Dividend growth rate, annualized
7
Last 5 years
1.90% <-- =(1+B3)^4-1
8
Last 10 years
3.61% <-- =(1+B4)^4-1
9
10
Date
Dividends
11
29-May-96
0.195
12
28-Aug-96
0.210
13
26-Nov-96
0.210
43
27-May-04
0.253
44
27-Aug-04
0.253
45
23-Nov-04
0.253
46
25-Feb-05
0.253
47
27-May-05
0.253
48
30-Aug-05
0.278
49
29-Nov-05
0.278
50
27-Feb-06
0.278
51
30-May-06
0.278
1
2
3
4
5
6
7
8
9
10
11
12
COMPUTING KELLOGG'S rE
WITH THE GORDON MODEL
Kellogg stock price, P0, 30 May 2006
Current dividend
Quarterly
Annualized dividend, Div0
Dividend growth rate, g
Last 5 years
Last 10 years
1.90%
3.61%
Gordon model cost of equity rE

Using last 5 years' growth
Using last 10 years' growth
4.25% <-- =B5*(1+B7)/B2+B7

6.00% <-- =B5*(1+B8)/B2+B8
48.28
0.278
1.112 <-- =B4*4
JOHNSON & JOHNSON, CASH FLOW TO EQUITY, 1995-2005
1
Year ending
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Dividends
31-Dec-95
31-Dec-96
31-Dec-97
31-Dec-98
31-Dec-99
31-Dec-00
31-Dec-01
31-Dec-02
31-Dec-03
31-Dec-04
31-Dec-05
827,000,000
974,000,000
1,137,000,000
1,305,000,000
1,479,000,000
1,724,000,000
2,047,000,000
2,381,000,000
2,746,000,000
3,251,000,000
3,793,000,000
End 2005 equity data

Stock price
Number of shares
Equity value
Repurchase of
common stock
322,000,000
412,000,000
628,000,000
930,000,000
840,000,000
973,000,000
2,570,000,000
6,538,000,000
1,183,000,000
1,384,000,000
1,717,000,000
Stock issues
-112,000,000
-149,000,000
-225,000,000
-269,000,000
-221,000,000
-387,000,000
-514,000,000
-390,000,000
-311,000,000
-642,000,000
-696,000,000
61.07
3,119,842,000
190,528,750,940 <-- =B16*B17
Equity cash flow, end 2005

Future growth rate
Based on 10-year growth rate
4,814,000,000 <-- =E13

16.59% <-- =(E13/E3)^(1/10)-1
15.82%
Gordon cost of equity, rE

19.54% <-- =B20*(1+B22)/B18+B22

18.75% <-- =B20*(1+B23)/B18+B23
Note: Stock issues are proceeds from issuance of stock options (most to employees)
For x-axes on graph
y-axes
35,064
38,717
8,529,000,000
-696,000,000
A
49
50
W TO EQUITY,
1995-2005
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Cash flow to
equity
Year on year
growth
1,037,000,000 <-- =SUM(B3:D3)

1,237,000,000
19.29% <-- =E4/E3-1
1,540,000,000
24.49% <-- =E5/E4-1
1,966,000,000
27.66% <-- =E6/E5-1
2,098,000,000
6.71%
2,310,000,000
10.10%
4,103,000,000
77.62%
8,529,000,000
107.87%
3,618,000,000
-57.58%
3,993,000,000
10.36%
4,814,000,000
20.56%
9,000,000,000
JNJ, CASH FLOW TO EQUITY, 1995-2005
8,000,000,000
7,000,000,000
6,000,000,000
Total dividends
Stock repurchases
5,000,000,000
Stock issues
4,000,000,000
Cash flow to equity
3,000,000,000
2,000,000,000
1,000,000,000
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
-1,000,000,000
49
50
1995
1998 H 1999 2000
2001J 2002 K2003 2004
2005
E
F 1996 1997
G
I
L
-1,000,000,000
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48 2005
2005M
49
50
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
COMPUTING JNJ's rE BASED ON DIVIDENDS PER SHARE

JNJ's stock price, P0, 31 Dec 2005
Current dividend
Quarterly
Annualized dividend, Div0
Dividend growth rate, g
Growth since 17-Nov-00
Gordon model cost of equity rE
Date
17-Nov-00
15-Feb-01
18-May-01
17-Aug-01
16-Nov-01
14-Feb-02
17-May-02
16-Aug-02
15-Nov-02
13-Feb-03
16-May-03
15-Aug-03
14-Nov-03
12-Feb-04
14-May-04
13-Aug-04
12-Nov-04
11-Feb-05
13-May-05
19-Aug-05
18-Nov-05
61.07
0.33 <-- =B36
1.32 <-- =B4*4
Quarterly
3.69%
4.06%
Annualized
15.58% <-- =(1+B8)^4-1
17.26% <-- =(1+B9)^4-1
18.08% <-- =B5*(1+C8)/B2+C8

19.79% <-- =B5*(1+C9)/B2+C9
Dividend per
share
0.160
0.160
0.180
0.180
0.180
0.180
0.205
0.205
0.205
0.205
0.240
0.240
0.240
0.240
0.285
0.285
0.285
0.285
0.330
0.330
0.330
A
1
THE GORDON
2 Current dividend, Div0
3 Growth rate g1, years 1-m ("supernormal")
4 Growth rate g2, years 6 -
5 Number of supernormal growth years, m
6 Cost of equity
7
8 Dividend valuation
9 PV of supernormal growth years
10
Using Excel NPV
11
Check: Using book formula
12 PV of normal growth years, after year 5
13 Share value
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Year
1
2
3
4
5
6
7
8
9
10
11
12
etc.
MODEL WITH TWO GROWTH RATES

8.00
35%
8%
5
18%
60.99
60.99
169.35
230.33
Anticipated
dividend
10.80
14.58
19.68
26.57
35.87
38.74
41.84
45.19
48.80
52.71
56.92
61.48
etc.
ON MODEL
1 WITH TWO GROWTH RATES
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
<-<-<-<--
=NPV(B6,B16:B20)
=B2*(1+B3)/(1+B6)*(1-((1+B3)/(1+B6))^B5)/(1-(1+B3)/(1+B6))
=B20*(1+B4)/(B6-B4)/(1+B6)^B5
=SUM(B11:B12)
<-<-<-<-<-<-<--
=B2*(1+$B$3)
=B16*(1+$B$3)
=B17*(1+$B$3)
=B18*(1+$B$3)
=B19*(1+$B$3)
=B20*(1+$B$4)
=B21*(1+$B$4)
WACHOVIA BANK--DIVIDENDS, STOCK ISSUED AND STOCK REPURCHAS

Does historical growth overstate the cost of equity?
Common
Common
Total Dividend
stock
stock issued
payments
repurchased
16,462,000
150,730,000
1,215,000
29,717,000
170,756,000
31,197,000
24,961,000
191,488,000
98,804,000
25,339,000
210,503,000
52,908,000
24,115,000
235,495,000
65,032,000
25,826,000
254,458,000
376,716,000
59,281,000
327,303,000
532,682,000
80,375,000
381,798,000
531,122,000
59,478,000
418,447,000
634,623,000
2
3
1991
4
1992
5
1993
6
1994
7
1995
8
1996
9
1997
10
1998
11
1999
12
13 Compound growth rate
17.42%
14
Cost of capital using the Gordon Model
15 Using total equity payout and total equity value
16 End 1999 stock price
Number of shares
17 outstanding, end 1999
18 Future dividend growth, g?
19 End 1999 equity value, P0
Projected next total
20 equity cash flow, D1
Gordon model cost
21 of equity, rE
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
13.61%
Total equity
cash flow
135,483,000
172,236,000
265,331,000
238,072,000
276,412,000
605,348,000
800,704,000
832,545,000
993,592,000
118.65%
28.28%
Dividend per
share
0.89
1.00
1.11
1.22
1.38
1.52
1.65
1.86
2.06
Total equity
payout
per share
0.80
1.01
1.54
1.38
1.62
3.62
4.04
4.06
4.90
11.12%
25.47%
68.00
202,795,000
28.28% <-- =E13
13,790,060,000 <-- =B16*B17
1,274,598,774 <-- =E11*(1+B18)
37.52% <-- =B20/B19+B18
Shares
outstanding,
annual average
169,841,000
170,673,000
172,273,000
172,339,000
170,635,000
167,255,000
198,290,000
205,058,000
202,795,000
A
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
Common stock issued

Dividend payments
Common stock repurchased
Total equity payout
Number of shares
outstanding
60 end of year
61
62 Dividends per share
1999
59,478,000
418,447,000
634,623,000
1,112,548,000
1998
80,375,000
381,798,000
531,122,000
993,295,000
1997
59,281,000
327,303,000
532,682,000
919,266,000
1996
25,826,000
254,458,000
376,716,000
657,000,000
202,795,000
205,058,000
198,290,000
167,255,000
2.06
1.86
1.65
1.52
AND STOCK REPURCHASED

cost of equity?
1
2
3 <-- =D3+C3-B3
4 <-- =D4+C4-B4
5
6
7
8
9
10
11
12
13 <-- =(E11/E3)^(1/8)-1
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
F
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
1994
25,339,000
210,503,000
52,908,000
288,750,000
1993
24,961,000
191,488,000
98,804,000
315,253,000
1992
29,717,000
170,756,000
31,197,000
231,670,000
172,339,000
172,273,000
170,763,000
1.22
1.11
1.00
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
I
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
1991
55 16,462,000
56 150,730,000
57
1,215,000
58 168,407,000
59
60 169,841,000
61
62
0.89
A
1
2
3
4
5
6
7
8
WACHOVIA, TWO-STAGE GORDON MODEL

End-1999 equity value, P0
End 1999 total equity payout
High growth rate, ghigh
Number of high-growth years, m
Normal growth rate, gnormal
Cost of equity, rE
9 using the function TwoStageGordon
13,790,060,000
993,592,000
28.28%
3
4%
17.251% <-- =twostagegordon(B2,B3,B5,B6,B7)
COMPUTING THE BETA FOR INTEL

monthly returns for Intel and S&P 500, 2001-2006
Alpha
Beta
Using Excel's Slope function
Using Cov/Var
R-squared
t-statistic for alpha
t-statistic for beta
Date
9-Jan-01
1-Feb-01
1-Mar-01
2-Apr-01
1-May-01
1-Jun-01
2-Jul-01
1-Aug-01
4-Sep-01
1-Oct-01
1-Nov-01
3-Dec-01
2-Jan-02
1-Feb-02
1-Mar-02
1-Apr-02
1-May-02
-13%
-11%
3-Jun-02
1-Jul-02
1-Aug-02
3-Sep-02
1-Oct-02
1-Nov-02
2-Dec-02
2-Jan-03
3-Feb-03
3-Mar-03
1-Apr-03
1-May-03
2-Jun-03
1-Jul-03
1-Aug-03
2-Sep-03
1-Nov-05
1-Dec-05
3-Jan-06
-9%
-0.0029 <-- =INTERCEPT(E13:E72,F13:F72)

2.2516
2.2516
0.5304
-0.2438
8.0942
<-<-<-<-<--
=SLOPE(E13:E72,F13:F72)
=COVAR(E13:E72,F13:F72)/VARP(F13:F72)
=RSQ(E13:E72,F13:F72)
=tintercept(E13:E72,F13:F72)
=tslope(E13:E72,F13:F72)
Prices
Returns
Intel
SP500
Intel
SP500
35.38 1366.01
27.32 1239.94
-25.85%
-9.68%
25.17 1160.33
-8.20%
-6.64%
29.57 1249.46
16.11%
7.40%
25.86 1255.82
-13.41%
0.51%
28 1224.38
7.95%
-2.54%
-1.08%
Intel 28.54
Returns1211.23
vs SP500, 2001-20061.91%
26.78 1133.58
-6.37%
-6.63%
25%
19.58 1040.94
-31.31%
-8.53%
23.39 1059.78
17.78%
1.79%
31.31 1139.45
29.16%
7.25%
15%
30.15 1148.08
-3.78%
0.75%
33.59
1130.2
10.80%
-1.57%
27.38 1106.73
-20.44%
-2.10%
5%
29.17 1147.39
6.33%
3.61%
27.44 1076.92
-6.11%
-6.34%
26.51
1067.14
-7%
-5%
-3%
-1%
1%-3.45%3% -0.91%
5%
-5%
17.54
989.82
-41.30%
-7.52%
18.04
911.62
2.81%
-8.23%
16.02
916.07
-11.88%
0.49%
SP500 returns
13.35
815.28 -15%
-18.23% -11.66%
16.62
885.76
21.91%
8.29%
20.09
936.31
18.96%
5.55%
-25%
14.98
879.82
-29.35%
-6.22%
y = 2.2516x - 0.0029
15.06
855.7
0.53% R-2.78%
2 = 0.5304
16.62
841.15
9.86%
-1.71%
15.68
848.18 -35%
-5.82%
0.83%
17.72
916.92
12.23%
7.79%
20.08
963.59
12.50%
4.96%
20.07
974.5 -45%
-0.05%
1.13%
24
990.31
17.88%
1.61%
27.59 1008.01
13.94%
1.77%
26.56
995.97
-3.80%
-1.20%
26.27 1249.48
13.03%
3.46%
24.57 1248.29
-6.69%
-0.10%
25.9 1285.45
5.27%
2.93%
Intel returns
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
70
71
72
NTEL
001-2006
1
2
3
4
F72)/VARP(F13:F72)
5
6
7
8
9
10
11
12
13 <-- =LN(C13/C12)
14 <-- =LN(C14/C13)
15 <-- =LN(C15/C14)
16
17
18
19
20
21
22
23
24
25
26
27
28
5%
7%
29
30
31
SP500 returns
32
33
34
35
y = 2.2516x - 0.0029
36
= 0.5304
37
38
39
40
41
42
43
44
70
71
72
COMPUTING THE BETA FOR INTEL

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
monthly returns for Intel and SP500, 2001-2006

Alpha
Beta
R-squared
t-statistic for alpha
t-statistic for beta
Date
9-Jan-01
1-Feb-01
1-Mar-01
2-Apr-01
1-May-01
1-Jun-01
2-Jul-01
1-Aug-01
4-Sep-01
1-Oct-01
1-Nov-01
3-Dec-01
2-Jan-02
1-Feb-02
1-Mar-02
1-Apr-02
1-May-02
3-Jun-02
1-Jul-02
1-Aug-02
3-Sep-02
1-Oct-02
1-Nov-02
2-Dec-02
2-Jan-03
3-Feb-03
3-Mar-03
1-Apr-03
1-May-03
2-Jun-03
1-Jul-03
1-Aug-03
2-Sep-03
1-Oct-03
3-Nov-03
1-Dec-03
2-Jan-04
2-Feb-04
1-Mar-04
-0.0029
2.2516
0.5304
-0.2438
8.0942
<-<-<-<-<--
=INTERCEPT(E12:E71,F12:F71)
=SLOPE(E12:E71,F12:F71)
=RSQ(E12:E71,F12:F71)
Prices
Intel
SP500
35.38 1366.01
27.32 1239.94
25.17 1160.33
29.57 1249.46
25.86 1255.82
28.00 1224.38
28.54 1211.23
26.78 1133.58
19.58 1040.94
23.39 1059.78
31.31 1139.45
30.15 1148.08
33.59 1130.20
27.38 1106.73
29.17 1147.39
27.44 1076.92
26.51 1067.14
17.54
989.82
18.04
911.62
16.02
916.07
13.35
815.28
16.62
885.76
20.09
936.31
14.98
879.82
15.06
855.70
16.62
841.15
15.68
848.18
17.72
916.92
20.08
963.59
20.07
974.50
24.00
990.31
27.59 1008.01
26.56
995.97
31.80 1050.71
32.39 1058.20
30.95 1111.92
29.47 1131.13
28.23 1144.94
26.30 1126.21
Returns
Intel
SP500
-25.85%
-8.20%
16.11%
-13.41%
7.95%
1.91%
-6.37%
-31.31%
17.78%
29.16%
-3.78%
10.80%
-20.44%
6.33%
-6.11%
-3.45%
-41.30%
2.81%
-11.88%
-18.23%
21.91%
18.96%
-29.35%
0.53%
9.86%
-5.82%
12.23%
12.50%
-0.05%
17.88%
13.94%
-3.80%
18.01%
1.84%
-4.55%
-4.90%
-4.30%
-7.08%
-9.68% <-- =LN(C12/C11)

-6.64% <-- =LN(C13/C12)
7.40% <-- =LN(C14/C13)
0.51%
-2.54%
-1.08%
-6.63%
-8.53%
1.79%
7.25%
0.75%
-1.57%
-2.10%
3.61%
-6.34%
-0.91%
-7.52%
-8.23%
0.49%
-11.66%
8.29%
5.55%
-6.22%
-2.78%
-1.71%
0.83%
7.79%
4.96%
1.13%
1.61%
1.77%
-1.20%
5.35%
0.71%
4.95%
1.71%
1.21%
-1.65%
A
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
1-Apr-04
3-May-04
1-Jun-04
1-Jul-04
2-Aug-04
1-Sep-04
1-Oct-04
1-Nov-04
1-Dec-04
3-Jan-05
1-Feb-05
1-Mar-05
1-Apr-05
2-May-05
1-Jun-05
1-Jul-05
1-Aug-05
1-Sep-05
3-Oct-05
1-Nov-05
1-Dec-05
3-Jan-06
B
24.88
27.64
26.72
23.61
20.65
19.46
21.59
21.74
22.73
21.81
23.39
22.65
22.93
26.38
25.46
26.55
25.24
24.19
23.06
26.27
24.57
25.90
C
1107.30
1120.68
1140.84
1101.72
1104.24
1114.58
1130.20
1173.82
1211.92
1181.27
1203.60
1180.59
1156.85
1191.50
1191.33
1234.18
1220.33
1228.81
1207.01
1249.48
1248.29
1285.45
E
-5.55%
10.52%
-3.39%
-12.37%
-13.40%
-5.94%
10.39%
0.69%
4.45%
-4.13%
6.99%
-3.21%
1.23%
14.02%
-3.55%
4.19%
-5.06%
-4.25%
-4.78%
13.03%
-6.69%
5.27%
F
-1.69%
1.20%
1.78%
-3.49%
0.23%
0.93%
1.39%
3.79%
3.19%
-2.56%
1.87%
-1.93%
-2.03%
2.95%
-0.01%
3.53%
-1.13%
0.69%
-1.79%
3.46%
-0.10%
2.93%
I
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Slope -->
Standard error of slope -->
R-squared -->
F statistic -->
SSxy -->
Cells J14:K18created with the

formula
{=LINEST(E12:E71,F12:F71,,1)}
Slope
Intercept
2.2516
-0.0029
0.2782
0.0120
0.5304
0.0927
65.5155
58.0000
0.5627
0.4982
<-- Intercept
<-- Standard error of intercept
<-- Standard error of y values
<-- Degrees of freedom
<-- SSE = Residual sum of squares
COMPUTING BETA FOR INTEL

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
Monthly returns for Intel and S&P500, 2001-2006

Alpha
Beta
R-squared
t for alpha
t for beta
Date
9-Jan-01
1-Feb-01
1-Mar-01
2-Apr-01
1-May-01
1-Jun-01
2-Jul-01
1-Aug-05
1-Sep-05
3-Oct-05
1-Nov-05
1-Dec-05
3-Jan-06
-0.0029
2.2516
0.5304
-0.2438
8.0942
<-<-<-<-<--
=INTERCEPT(E11:E70,F11:F70)
=SLOPE(E11:E70,F11:F70)
=RSQ(E11:E70,F11:F70)
Prices
Intel
SP500
35.38 1366.01
27.32 1239.94
25.17 1160.33
29.57 1249.46
25.86 1255.82
28.00 1224.38
28.54 1211.23
25.24 1220.33
24.19 1228.81
23.06 1207.01
26.27 1249.48
24.57 1248.29
25.90 1285.45
Intel
Returns
SP500
-0.2585
-0.0820
0.1611
-0.1341
0.0795
0.0191
-0.0506
-0.0425
-0.0478
0.1303
-0.0669
0.0527
-0.0968 <-- =LN(C11/C10)

-0.0664 <-- =LN(C12/C11)
0.0740 <-- =LN(C13/C12)
0.0051
-0.0254
-0.0108
-0.0113
0.0069
-0.0179
0.0346
-0.0010
0.0293
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.7283
R Square
0.5304
Adjusted R Square
0.5223
Standard Error
0.0927
Observations
60
ANOVA
df
Regression
Residual
Total
Intercept
X Variable 1
1
58
59
SS
0.5627
0.4982
1.0609
MS
0.5627
0.0086
F
Significance F
65.5155
0.0000
Coefficients
Standard Error t Stat
P-value
-0.0029
0.0120
-0.2438
0.8083
2.2516
0.2782
8.0942
0.0000
Lower 95%
-0.0269
1.6948
Upper 95%
0.0210
2.8084
1
2
3
4
5
6
7
8
9
Regression screen:
10
<-- =LN(C11/C10)
11
<-- =LN(C12/C11)
12
<-- =LN(C13/C12)
13
14
15
16
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88 Lower 95.0% Upper 95.0%
89
-0.0269
0.0210
90
1.6948
2.8084
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
COMPUTING THE COST OF EQUITY FOR INTEL

Classic CAPM: rE = rf + b*[ E(rM)-rf ]
1
2 Intel beta
3 Risk free rate, rf
4 Expected market return, E(rM)
5 Intel cost of equity, rE,Intel
2.2516
4.93%
9.98%
16.31% <-- =B3+B2*(B4-B3)
COMPUTING INTEL'S TAX RATE

INTEL CORP 10-K 2005-12-31: Income Statement
2005/12/31
$38,826,000,000
$15,777,000,000
$23,049,000,000
$5,145,000,000
$5,688,000,000
$0
$126,000,000
2004/12/31
$34,209,000,000
$14,463,000,000
$19,746,000,000
$4,778,000,000
$4,659,000,000
$0
$179,000,000
Net revenue
Cost of sales
Gross margin
Research and development
Marketing, general and administrative
Impairment of goodwill
Amortization and impairment of acquisition-related
intangibles and costs
Purchased in-process research and development
$0
$0
Operating expenses
$10,959,000,000
$9,616,000,000
Operating 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
$289,000,000
Income before taxes
$12,610,000,000 $10,417,000,000
Provision for taxes
$3,946,000,000
$2,901,000,000
Net income
$8,664,000,000
$7,516,000,000
Basic earnings per common share
$1,420,000
$1,170,000
Diluted earnings per common share
$1,400,000
$1,160,000
Weighted average common shares outstanding
$6,106,000,000
$6,400,000,000
Weighted average common shares outstanding, assuming$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 Centre.
Please read the on-line disclaimer at http://edgarscan.pwcglobal.com/EdgarScan/edgarscan_disclaimer.html
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%
Technology Centre.
edgarscan_disclaimer.html
COMPUTING THE COST OF EQUITY FOR INTEL

Tax-adjusted CAPM: rE = rf (1-TC) + b*[ E(rM)-rf (1-TC) ]
1
2 Intel beta
3 Intel tax rate, TC

2.2516
31.29% <-- Computed from Intel financials
4.93%
9.98%
18.24% <-- =B4*(1-B3)+B2*(B5-B4*(1-B3))
MEASURING E(rM) USING HISTORICAL DATA

Derived from prices for the Vanguard 500 Index Fund
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
(symbol: VFINX)
These prices include dividends; April 1987 - August 2006
Average monthly return
Monthly standard deviation
Annualized return
Annualized standard deviation
Date
1-Apr-87
1-May-87
1-Jun-87
1-Jul-87
3-Aug-87
1-Sep-87
1-Oct-87
2-Nov-87
1-Dec-87
4-Jan-88
1-Feb-88
1-Mar-88
4-Apr-88
2-May-88
1-Jun-88
1-Jul-88
1-Aug-88
1-Sep-88
3-Oct-88
1-Nov-88
1-Dec-88
3-Jan-89
1-Feb-89
1-Mar-89
3-Apr-89
1-May-89
1-Jun-89
3-Jul-89
1-Aug-89
1-Sep-89
2-Oct-89
1-Nov-89
1-Dec-89
2-Jan-90
1-Feb-90
1-Mar-90
2-Apr-90
0.83% <-- =AVERAGE(C10:C241)

4.34% <-- =STDEVP(C10:C241)
9.98% <-- =12*B2
15.05% <-- =SQRT(12)*B3
Price
17.32
17.49
18.37
19.28
20.02
19.56
15.31
14.06
15.12
15.75
16.48
15.98
16.14
16.27
17.01
16.95
16.37
17.07
17.54
17.28
17.58
18.87
18.40
18.82
19.80
20.60
20.47
22.32
22.73
22.64
22.11
22.56
23.10
21.55
21.83
22.40
21.84
Return
0.98%
4.91%
4.83%
3.77%
-2.32%
-24.50%
-8.52%
7.27%
4.08%
4.53%
-3.08%
1.00%
0.80%
4.45%
-0.35%
-3.48%
4.19%
2.72%
-1.49%
1.72%
7.08%
-2.52%
2.26%
5.08%
3.96%
-0.63%
8.65%
1.82%
-0.40%
-2.37%
2.01%
2.37%
-6.95%
1.29%
2.58%
-2.53%
<-<-<-<--
=LN(B10/B9)
=LN(B11/B10)
=LN(B12/B11)
=LN(B13/B12)
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
A
1-May-90
1-Jun-90
2-Jul-90
1-Aug-90
4-Sep-90
1-Oct-90
1-Nov-90
3-Dec-90
2-Jan-91
1-Feb-91
1-Mar-91
1-Apr-91
1-May-91
3-Jun-91
1-Jul-91
1-Aug-91
3-Sep-91
1-Oct-91
1-Nov-91
2-Dec-91
2-Jan-92
3-Feb-92
2-Mar-92
1-Apr-92
1-May-92
1-Jun-92
1-Jul-92
3-Aug-92
1-Sep-92
1-Oct-92
2-Nov-92
1-Dec-92
4-Jan-93
1-Feb-93
1-Mar-93
1-Apr-93
3-May-93
1-Jun-93
1-Jul-93
2-Aug-93
1-Sep-93
1-Oct-93
1-Nov-93
1-Dec-93
3-Jan-94
1-Feb-94
1-Mar-94
4-Apr-94
2-May-94
1-Jun-94
1-Jul-94
B
23.95
23.79
23.71
21.57
20.51
20.43
21.74
22.33
23.30
24.96
25.56
25.61
26.70
25.49
26.67
27.29
26.83
27.19
26.10
29.07
28.53
28.89
28.33
29.16
29.30
28.86
30.03
29.41
29.75
29.85
30.87
31.46
31.49
31.92
32.59
31.80
32.64
32.73
32.59
33.82
33.56
34.25
33.91
34.33
35.49
34.52
33.01
33.44
33.97
33.14
34.23
C
9.22%
-0.67%
-0.34%
-9.46%
-5.04%
-0.39%
6.21%
2.68%
4.25%
6.88%
2.38%
0.20%
4.17%
-4.64%
4.53%
2.30%
-1.70%
1.33%
-4.09%
10.78%
-1.88%
1.25%
-1.96%
2.89%
0.48%
-1.51%
3.97%
-2.09%
1.15%
0.34%
3.36%
1.89%
0.10%
1.36%
2.08%
-2.45%
2.61%
0.28%
-0.43%
3.70%
-0.77%
2.04%
-1.00%
1.23%
3.32%
-2.77%
-4.47%
1.29%
1.57%
-2.47%
3.24%
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
A
1-Aug-94
1-Sep-94
3-Oct-94
1-Nov-94
1-Dec-94
3-Jan-95
1-Feb-95
1-Mar-95
3-Apr-95
1-May-95
1-Jun-95
3-Jul-95
1-Aug-95
1-Sep-95
2-Oct-95
1-Nov-95
1-Dec-95
2-Jan-96
1-Feb-96
1-Mar-96
1-Apr-96
1-May-96
3-Jun-96
1-Jul-96
1-Aug-96
3-Sep-96
1-Oct-96
1-Nov-96
2-Dec-96
2-Jan-97
3-Feb-97
3-Mar-97
1-Apr-97
1-May-97
2-Jun-97
1-Jul-97
1-Aug-97
2-Sep-97
1-Oct-97
3-Nov-97
1-Dec-97
2-Jan-98
2-Feb-98
2-Mar-98
1-Apr-98
1-May-98
1-Jun-98
1-Jul-98
3-Aug-98
1-Sep-98
1-Oct-98
B
35.62
34.75
35.53
34.23
34.73
35.63
37.01
38.10
39.22
40.78
41.72
43.10
43.21
45.03
44.87
46.83
47.74
49.35
49.81
50.30
51.03
52.33
52.53
50.21
51.26
54.13
55.62
59.83
58.65
62.31
62.80
60.20
63.79
67.67
70.68
76.31
72.03
75.97
73.43
76.80
78.11
78.98
84.66
88.98
89.88
88.31
91.91
90.94
77.78
82.76
89.52
C
3.98%
-2.47%
2.22%
-3.73%
1.45%
2.56%
3.80%
2.90%
2.90%
3.90%
2.28%
3.25%
0.25%
4.13%
-0.36%
4.28%
1.92%
3.32%
0.93%
0.98%
1.44%
2.52%
0.38%
-4.52%
2.07%
5.45%
2.72%
7.30%
-1.99%
6.05%
0.78%
-4.23%
5.79%
5.90%
4.35%
7.66%
-5.77%
5.33%
-3.40%
4.49%
1.69%
1.11%
6.94%
4.98%
1.01%
-1.76%
4.00%
-1.06%
-15.63%
6.21%
7.85%
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
A
2-Nov-98
1-Dec-98
4-Jan-99
1-Feb-99
1-Mar-99
1-Apr-99
3-May-99
1-Jun-99
1-Jul-99
2-Aug-99
1-Sep-99
1-Oct-99
1-Nov-99
1-Dec-99
3-Jan-00
1-Feb-00
1-Mar-00
3-Apr-00
1-May-00
1-Jun-00
3-Jul-00
1-Aug-00
1-Sep-00
2-Oct-00
1-Nov-00
1-Dec-00
2-Jan-01
1-Feb-01
1-Mar-01
2-Apr-01
1-May-01
1-Jun-01
2-Jul-01
1-Aug-01
4-Sep-01
1-Oct-01
1-Nov-01
3-Dec-01
2-Jan-02
1-Feb-02
1-Mar-02
1-Apr-02
1-May-02
3-Jun-02
1-Jul-02
1-Aug-02
3-Sep-02
1-Oct-02
1-Nov-02
2-Dec-02
2-Jan-03
B
94.95
100.47
104.69
101.42
105.47
109.53
106.91
112.85
109.32
108.78
105.80
112.49
114.77
121.64
115.52
113.32
124.38
120.64
118.18
121.12
119.31
126.70
120.00
119.48
110.07
110.63
114.55
104.09
97.46
105.04
105.72
103.13
102.10
95.70
87.95
89.61
96.47
97.32
95.88
94.03
97.55
91.62
90.93
84.44
77.92
78.43
69.89
76.03
80.71
75.74
73.76
C
5.89%
5.65%
4.11%
-3.17%
3.92%
3.78%
-2.42%
5.41%
-3.18%
-0.50%
-2.78%
6.13%
2.01%
5.81%
-5.16%
-1.92%
9.31%
-3.05%
-2.06%
2.46%
-1.51%
6.01%
-5.43%
-0.43%
-8.20%
0.51%
3.48%
-9.58%
-6.58%
7.49%
0.65%
-2.48%
-1.00%
-6.47%
-8.44%
1.87%
7.38%
0.88%
-1.49%
-1.95%
3.68%
-6.27%
-0.76%
-7.40%
-8.04%
0.65%
-11.53%
8.42%
5.97%
-6.36%
-2.65%
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
A
3-Feb-03
3-Mar-03
1-Apr-03
1-May-03
2-Jun-03
1-Jul-03
1-Aug-03
2-Sep-03
1-Oct-03
3-Nov-03
1-Dec-03
2-Jan-04
2-Feb-04
1-Mar-04
1-Apr-04
3-May-04
1-Jun-04
1-Jul-04
2-Aug-04
1-Sep-04
1-Oct-04
1-Nov-04
1-Dec-04
3-Jan-05
1-Feb-05
1-Mar-05
1-Apr-05
2-May-05
1-Jun-05
1-Jul-05
1-Aug-05
1-Sep-05
3-Oct-05
1-Nov-05
1-Dec-05
3-Jan-06
1-Feb-06
1-Mar-06
3-Apr-06
1-May-06
1-Jun-06
3-Jul-06
1-Aug-06
B
72.64
73.33
79.38
83.56
84.61
86.09
87.75
86.81
91.71
92.50
97.33
99.10
100.47
98.95
97.39
98.71
100.61
97.28
97.65
98.69
100.19
104.24
107.78
105.14
107.34
105.45
103.43
106.71
106.84
110.80
109.79
110.66
108.80
112.90
112.92
115.91
116.21
117.65
119.22
115.76
115.91
116.61
119.37
C
-1.53%
0.95%
7.93%
5.13%
1.25%
1.73%
1.91%
-1.08%
5.49%
0.86%
5.09%
1.80%
1.37%
-1.52%
-1.59%
1.35%
1.91%
-3.37%
0.38%
1.06%
1.51%
3.96%
3.34%
-2.48%
2.07%
-1.78%
-1.93%
3.12%
0.12%
3.64%
-0.92%
0.79%
-1.70%
3.70%
0.02%
2.61%
0.26%
1.23%
1.33%
-2.95%
0.13%
0.60%
2.34%
MEASURING THE MARKET RISK PREMIUM E(rM) - rf USING HISTORICA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Vanguard 500 Index Fund (symbol: VFINX) minus Treasury Bills

April 1987 - August 2006
All measurements relate to monthly returns on SP500, rMt, and the Treasury bill r
Average monthly risk premium
Monthly standard deviation
Annualized risk premium
Annualized standard deviation
Date
1-Apr-87
1-May-87
1-Jun-87
1-Jul-87
3-Aug-87
1-Sep-87
1-Oct-87
2-Nov-87
1-Dec-87
4-Jan-88
1-Feb-88
1-Mar-88
4-Apr-88
2-May-88
1-Jun-88
1-Jul-88
1-Aug-88
1-Sep-88
3-Oct-88
1-Nov-88
1-Dec-88
3-Jan-89
1-Feb-89
1-Mar-89
3-Apr-89
1-May-89
1-Jun-89
3-Jul-89
1-Aug-89
1-Sep-89
2-Oct-89
1-Nov-89
1-Dec-89
2-Jan-90
1-Feb-90
1-Mar-90
0.46% <-- =AVERAGE(E10:E241)

4.34% <-- =STDEVP(E10:E241)
5.50% <-- =12*B2
15.04% <-- =SQRT(12)*B3
Price
17.32
17.49
18.37
19.28
20.02
19.56
15.31
14.06
15.12
15.75
16.48
15.98
16.14
16.27
17.01
16.95
16.37
17.07
17.54
17.28
17.58
18.87
18.4
18.82
19.8
20.6
20.47
22.32
22.73
22.64
22.11
22.56
23.1
21.55
21.83
22.4
Return
0.98%
4.91%
4.83%
3.77%
-2.32%
-24.50%
-8.52%
7.27%
4.08%
4.53%
-3.08%
1.00%
0.80%
4.45%
-0.35%
-3.48%
4.19%
2.72%
-1.49%
1.72%
7.08%
-2.52%
2.26%
5.08%
3.96%
-0.63%
8.65%
1.82%
-0.40%
-2.37%
2.01%
2.37%
-6.95%
1.29%
2.58%
Treasury
bill rate
Market
risk
premium
0.47%
0.47%
0.47%
0.47%
0.50%
0.53%
0.51%
0.47%
0.48%
0.48%
0.47%
0.48%
0.49%
0.52%
0.54%
0.56%
0.59%
0.60%
0.61%
0.65%
0.67%
0.69%
0.71%
0.74%
0.72%
0.70%
0.68%
0.66%
0.66%
0.65%
0.64%
0.64%
0.64%
0.64%
0.65%
0.51%
4.44%
4.36%
3.29%
-2.83%
-25.03%
-9.03%
6.79%
3.60%
4.05%
-3.55%
0.52%
0.31%
3.93%
-0.89%
-4.04%
3.60%
2.11%
-2.11%
1.07%
6.41%
-3.21%
1.55%
4.34%
3.24%
-1.34%
7.97%
1.16%
-1.06%
-3.01%
1.38%
1.72%
-7.58%
0.65%
1.93%
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
A
2-Apr-90
1-May-90
1-Jun-90
2-Jul-90
1-Aug-90
4-Sep-90
1-Oct-90
1-Nov-90
3-Dec-90
2-Jan-91
1-Feb-91
1-Mar-91
1-Apr-91
1-May-91
3-Jun-91
1-Jul-91
1-Aug-91
3-Sep-91
1-Oct-91
1-Nov-91
2-Dec-91
2-Jan-92
3-Feb-92
2-Mar-92
1-Apr-92
1-May-92
1-Jun-92
1-Jul-92
3-Aug-92
1-Sep-92
1-Oct-92
2-Nov-92
1-Dec-92
4-Jan-93
1-Feb-93
1-Mar-93
1-Apr-93
3-May-93
1-Jun-93
1-Jul-93
2-Aug-93
1-Sep-93
1-Oct-93
1-Nov-93
1-Dec-93
3-Jan-94
1-Feb-94
1-Mar-94
4-Apr-94
2-May-94
1-Jun-94
B
21.84
23.95
23.79
23.71
21.57
20.51
20.43
21.74
22.33
23.3
24.96
25.56
25.61
26.7
25.49
26.67
27.29
26.83
27.19
26.1
29.07
28.53
28.89
28.33
29.16
29.3
28.86
30.03
29.41
29.75
29.85
30.87
31.46
31.49
31.92
32.59
31.8
32.64
32.73
32.59
33.82
33.56
34.25
33.91
34.33
35.49
34.52
33.01
33.44
33.97
33.14
C
-2.53%
9.22%
-0.67%
-0.34%
-9.46%
-5.04%
-0.39%
6.21%
2.68%
4.25%
6.88%
2.38%
0.20%
4.17%
-4.64%
4.53%
2.30%
-1.70%
1.33%
-4.09%
10.78%
-1.88%
1.25%
-1.96%
2.89%
0.48%
-1.51%
3.97%
-2.09%
1.15%
0.34%
3.36%
1.89%
0.10%
1.36%
2.08%
-2.45%
2.61%
0.28%
-0.43%
3.70%
-0.77%
2.04%
-1.00%
1.23%
3.32%
-2.77%
-4.47%
1.29%
1.57%
-2.47%
D
0.66%
0.65%
0.65%
0.64%
0.64%
0.62%
0.61%
0.60%
0.59%
0.56%
0.52%
0.50%
0.49%
0.47%
0.46%
0.46%
0.47%
0.44%
0.44%
0.42%
0.38%
0.34%
0.32%
0.32%
0.34%
0.31%
0.30%
0.31%
0.27%
0.26%
0.24%
0.24%
0.26%
0.27%
0.25%
0.24%
0.25%
0.24%
0.25%
0.26%
0.25%
0.25%
0.25%
0.25%
0.26%
0.26%
0.25%
0.27%
0.29%
0.31%
0.35%
E
-3.19%
8.58%
-1.32%
-0.98%
-10.09%
-5.66%
-1.00%
5.62%
2.09%
3.69%
6.36%
1.88%
-0.30%
3.70%
-5.09%
4.06%
1.83%
-2.14%
0.90%
-4.51%
10.40%
-2.21%
0.94%
-2.28%
2.55%
0.17%
-1.82%
3.67%
-2.35%
0.89%
0.09%
3.12%
1.63%
-0.17%
1.11%
1.83%
-2.70%
2.37%
0.03%
-0.68%
3.45%
-1.02%
1.79%
-1.25%
0.97%
3.07%
-3.02%
-4.74%
1.00%
1.27%
-2.82%
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
A
1-Jul-94
1-Aug-94
1-Sep-94
3-Oct-94
1-Nov-94
1-Dec-94
3-Jan-95
1-Feb-95
1-Mar-95
3-Apr-95
1-May-95
1-Jun-95
3-Jul-95
1-Aug-95
1-Sep-95
2-Oct-95
1-Nov-95
1-Dec-95
2-Jan-96
1-Feb-96
1-Mar-96
1-Apr-96
1-May-96
3-Jun-96
1-Jul-96
1-Aug-96
3-Sep-96
1-Oct-96
1-Nov-96
2-Dec-96
2-Jan-97
3-Feb-97
3-Mar-97
1-Apr-97
1-May-97
2-Jun-97
1-Jul-97
1-Aug-97
2-Sep-97
1-Oct-97
3-Nov-97
1-Dec-97
2-Jan-98
2-Feb-98
2-Mar-98
1-Apr-98
1-May-98
1-Jun-98
1-Jul-98
3-Aug-98
1-Sep-98
B
34.23
35.62
34.75
35.53
34.23
34.73
35.63
37.01
38.1
39.22
40.78
41.72
43.1
43.21
45.03
44.87
46.83
47.74
49.35
49.81
50.3
51.03
52.33
52.53
50.21
51.26
54.13
55.62
59.83
58.65
62.31
62.8
60.2
63.79
67.67
70.68
76.31
72.03
75.97
73.43
76.8
78.11
78.98
84.66
88.98
89.88
88.31
91.91
90.94
77.78
82.76
C
3.24%
3.98%
-2.47%
2.22%
-3.73%
1.45%
2.56%
3.80%
2.90%
2.90%
3.90%
2.28%
3.25%
0.25%
4.13%
-0.36%
4.28%
1.92%
3.32%
0.93%
0.98%
1.44%
2.52%
0.38%
-4.52%
2.07%
5.45%
2.72%
7.30%
-1.99%
6.05%
0.78%
-4.23%
5.79%
5.90%
4.35%
7.66%
-5.77%
5.33%
-3.40%
4.49%
1.69%
1.11%
6.94%
4.98%
1.01%
-1.76%
4.00%
-1.06%
-15.63%
6.21%
D
0.35%
0.36%
0.37%
0.39%
0.41%
0.44%
0.47%
0.48%
0.48%
0.48%
0.47%
0.47%
0.46%
0.45%
0.45%
0.44%
0.44%
0.45%
0.43%
0.42%
0.40%
0.41%
0.41%
0.42%
0.42%
0.43%
0.42%
0.42%
0.42%
0.42%
0.41%
0.42%
0.42%
0.43%
0.43%
0.42%
0.41%
0.42%
0.43%
0.41%
0.41%
0.43%
0.43%
0.42%
0.42%
0.42%
0.41%
0.42%
0.42%
0.41%
0.41%
E
2.89%
3.62%
-2.85%
1.83%
-4.14%
1.01%
2.09%
3.32%
2.42%
2.42%
3.43%
1.81%
2.80%
-0.20%
3.68%
-0.80%
3.84%
1.48%
2.89%
0.51%
0.58%
1.03%
2.10%
-0.04%
-4.94%
1.64%
5.03%
2.29%
6.88%
-2.41%
5.64%
0.36%
-4.65%
5.36%
5.47%
3.93%
7.25%
-6.19%
4.90%
-3.81%
4.07%
1.26%
0.68%
6.52%
4.55%
0.59%
-2.17%
3.58%
-1.48%
-16.04%
5.80%
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
A
1-Oct-98
2-Nov-98
1-Dec-98
4-Jan-99
1-Feb-99
1-Mar-99
1-Apr-99
3-May-99
1-Jun-99
1-Jul-99
2-Aug-99
1-Sep-99
1-Oct-99
1-Nov-99
1-Dec-99
3-Jan-00
1-Feb-00
1-Mar-00
3-Apr-00
1-May-00
1-Jun-00
3-Jul-00
1-Aug-00
1-Sep-00
2-Oct-00
1-Nov-00
1-Dec-00
2-Jan-01
1-Feb-01
1-Mar-01
2-Apr-01
1-May-01
1-Jun-01
2-Jul-01
1-Aug-01
4-Sep-01
1-Oct-01
1-Nov-01
3-Dec-01
2-Jan-02
1-Feb-02
1-Mar-02
1-Apr-02
1-May-02
3-Jun-02
1-Jul-02
1-Aug-02
3-Sep-02
1-Oct-02
1-Nov-02
2-Dec-02
B
89.52
94.95
100.47
104.69
101.42
105.47
109.53
106.91
112.85
109.32
108.78
105.8
112.49
114.77
121.64
115.52
113.32
124.38
120.64
118.18
121.12
119.31
126.7
120
119.48
110.07
110.63
114.55
104.09
97.46
105.04
105.72
103.13
102.1
95.7
87.95
89.61
96.47
97.32
95.88
94.03
97.55
91.62
90.93
84.44
77.92
78.43
69.89
76.03
80.71
75.74
C
7.85%
5.89%
5.65%
4.11%
-3.17%
3.92%
3.78%
-2.42%
5.41%
-3.18%
-0.50%
-2.78%
6.13%
2.01%
5.81%
-5.16%
-1.92%
9.31%
-3.05%
-2.06%
2.46%
-1.51%
6.01%
-5.43%
-0.43%
-8.20%
0.51%
3.48%
-9.58%
-6.58%
7.49%
0.65%
-2.48%
-1.00%
-6.47%
-8.44%
1.87%
7.38%
0.88%
-1.49%
-1.95%
3.68%
-6.27%
-0.76%
-7.40%
-8.04%
0.65%
-11.53%
8.42%
5.97%
-6.36%
D
0.38%
0.33%
0.37%
0.37%
0.36%
0.37%
0.37%
0.36%
0.38%
0.38%
0.38%
0.39%
0.39%
0.41%
0.42%
0.43%
0.44%
0.46%
0.47%
0.47%
0.48%
0.47%
0.50%
0.51%
0.50%
0.51%
0.51%
0.48%
0.43%
0.41%
0.37%
0.32%
0.30%
0.29%
0.29%
0.28%
0.22%
0.18%
0.16%
0.14%
0.14%
0.14%
0.15%
0.14%
0.14%
0.14%
0.14%
0.14%
0.14%
0.13%
0.10%
E
7.47%
5.56%
5.28%
3.75%
-3.53%
3.55%
3.41%
-2.78%
5.03%
-3.56%
-0.87%
-3.17%
5.74%
1.60%
5.39%
-5.60%
-2.37%
8.85%
-3.53%
-2.53%
1.97%
-1.98%
5.51%
-5.94%
-0.93%
-8.71%
-0.01%
3.00%
-10.00%
-6.99%
7.12%
0.32%
-2.78%
-1.29%
-6.77%
-8.72%
1.65%
7.20%
0.72%
-1.63%
-2.09%
3.53%
-6.42%
-0.90%
-7.55%
-8.18%
0.51%
-11.66%
8.28%
5.84%
-6.46%
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
A
2-Jan-03
3-Feb-03
3-Mar-03
1-Apr-03
1-May-03
2-Jun-03
1-Jul-03
1-Aug-03
2-Sep-03
1-Oct-03
3-Nov-03
1-Dec-03
2-Jan-04
2-Feb-04
1-Mar-04
1-Apr-04
3-May-04
1-Jun-04
1-Jul-04
2-Aug-04
1-Sep-04
1-Oct-04
1-Nov-04
1-Dec-04
3-Jan-05
1-Feb-05
1-Mar-05
1-Apr-05
2-May-05
1-Jun-05
1-Jul-05
1-Aug-05
1-Sep-05
3-Oct-05
1-Nov-05
1-Dec-05
3-Jan-06
1-Feb-06
1-Mar-06
3-Apr-06
1-May-06
1-Jun-06
3-Jul-06
1-Aug-06
B
73.76
72.64
73.33
79.38
83.56
84.61
86.09
87.75
86.81
91.71
92.5
97.33
99.1
100.47
98.95
97.39
98.71
100.61
97.28
97.65
98.69
100.19
104.24
107.78
105.14
107.34
105.45
103.43
106.71
106.84
110.8
109.79
110.66
108.8
112.9
112.92
115.91
116.21
117.65
119.22
115.76
115.91
116.61
119.37
C
-2.65%
-1.53%
0.95%
7.93%
5.13%
1.25%
1.73%
1.91%
-1.08%
5.49%
0.86%
5.09%
1.80%
1.37%
-1.52%
-1.59%
1.35%
1.91%
-3.37%
0.38%
1.06%
1.51%
3.96%
3.34%
-2.48%
2.07%
-1.78%
-1.93%
3.12%
0.12%
3.64%
-0.92%
0.79%
-1.70%
3.70%
0.02%
2.61%
0.26%
1.23%
1.33%
-2.95%
0.13%
0.60%
2.34%
D
0.10%
0.10%
0.10%
0.09%
0.09%
0.09%
0.08%
0.08%
0.08%
0.08%
0.08%
0.08%
0.08%
0.07%
0.08%
0.08%
0.08%
0.09%
0.11%
0.11%
0.12%
0.14%
0.15%
0.17%
0.18%
0.19%
0.21%
0.23%
0.23%
0.24%
0.25%
0.27%
0.29%
0.29%
0.31%
0.32%
0.32%
0.35%
0.37%
0.38%
0.38%
0.39%
0.40%
0.41%
E
-2.75%
-1.63%
0.85%
7.83%
5.04%
1.16%
1.66%
1.83%
-1.16%
5.41%
0.78%
5.01%
1.73%
1.30%
-1.60%
-1.67%
1.27%
1.82%
-3.47%
0.27%
0.94%
1.37%
3.82%
3.17%
-2.66%
1.88%
-1.99%
-2.16%
2.89%
-0.11%
3.39%
-1.18%
0.50%
-1.98%
3.39%
-0.31%
2.29%
-0.09%
0.86%
0.95%
-3.33%
-0.26%
0.20%
1.93%
REMIUM E(rM) - rf USING HISTORICAL DATA
(symbol: VFINX) minus Treasury Bills

987 - August 2006
eturns on SP500,
rMt, and the Treasury bill rate rft
1
2
3
4
5
6
7
Methodological note: I have used the St. Louis FRED

data for 3-month Treasury Bills; this data is
annualized, and I have divided it by 12 to get the
monthly returns. Since the data can be taken as an
ex-ante return, the April 1987 rate is attributed to May
1987.
I've use 3-month instead of 1-month, because there

are lots of data problems with the latter.
8
9
10 <-- =C10-D10
11 <-- =C11-D11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
COMPUTING THE COST OF EQUITY FOR INTEL USING THE

MARKET RISK PREMIUM E(rM) - rf
1
2 Intel beta
3 Historical market risk premium
4 Intel tax rate, TC
2.2516
5.50%
31.29% <-- Computed from Intel financials

7
Classic CAPM
8
Tax-adjusted CAPM
9
17.31% <-- =B5+B2*B3

19.24% <-- =B5*(1-B4)+B2*(B3+B4*B5)
10
4.93%
Note: The tax-adjusted model in cell B8 uses the equivalence:

E(rM) - rf (1-TC) = E(rM) - rf + TC*rf
1
2
3
4
5
6
7
8
9
COMPUTING THE COST OF EQUITY FOR INTEL USING THE MARKET

PRICE/EARNINGS MULTIPLE TO COMPUTE E(rM)
Market price/earnings multiple, August 2006
Equity cash flow payout ratio
Anticipated growth of market equity cash flow
Expected market return, E(rM)
17
50.00%
6.00%
9.12%
Intel cost of equity calculations

Intel beta
Intel tax rate, TC
2.2516
31.29%

4.93%
Intel
cost
of
equity,
r
11
E,Intel
12
Classic CAPM
14.36%
13
Tax-adjusted CAPM
16.29%
14
15 Note: Price/Earnings ratio for S&P 500 from http://www.bullandbearwise.com
QUITY FOR INTEL USING THE MARKET

ULTIPLE TO
COMPUTE E(rM)
1
2
3
4
5 <-- =B3*(1+B4)/B2+B4
6
7
8
9 <-- Computed from Intel financials
10
11
12 <-- =B10+B8*(B5-B10)
13 <-- =B10*(1-B9)+B8*(B5-B10*(1-B9))
14
://www.bullandbearwise.com
15
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
COMPUTING THE COST OF DEBT FOR KRAFT

2005/12/31
316,000,000
2004/12/31
282,000,000
805,000,000
1,268,000,000
652,000,000
8,475,000,000
1,818,000,000
750,000,000
227,000,000
9,723,000,000
636,000,000
666,000,000
Net debt
Net interest cost
10,884,000,000
5.50%
12,236,000,000
Total debt
Cash paid:
Interest
11,200,000,000
12,518,000,000
679,000,000
633,000,000
Cash and cash equivalents

Short-term borrowings
Current portion of long-term debt
Due to Altria Group, Inc. and affiliates
Long-term debt
Interest and other debt expense, net
Interest cost
5.73%
Note: Altria debt is priced at LIBOR (from financial statements)
DEBT FOR1 KRAFT

2
3
4
5
6
7
8
9
10
11
12 <-- =SUM(C5:C8)-C3
13 <-- =B10/AVERAGE(B12:C12)
14
15
16
17
18
19 <-- =B17/AVERAGE(B15:C15)
20
21
22
23
24
25
26
27
YAHOO: NON-CALLABLE BBB CORPORATE BONDS WITH MATURITY 0.5 11 August 2006
Type
Issuer
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
PANHANDLE EASTN PIPE LINE CO

SAFEWAY INC
WEYERHAEUSER CO
CONSTELLATION ENERGY GROUP INC
PENNEY J C INC
MOHAWK INDS INC
PROGRESS ENERGY INC
AOL TIME WARNER INC
ARAMARK SVCS INC
BANK UTD CORP
COMCAST CABLE COMMUNICATIONS
STARWOOD HOTELS&RESORTS WRLDWD
VIACOM INC
REALTY INCOME CORP
CIGNA CORP
TELUS CORP
EOP OPER LTD PARTNERSHIP
POTASH CORP SASK INC
VORNADO RLTY TR
KENTUCKY POWER CO
AVALONBAY CMNTYS INC MTN BE
ARCHSTONE SMITH TR
BANK OKLA N A TULSA
LIBERTY PPTY LTD PARTNERSHIP
MASCO CORP
RAYTHEON CO
TIME WARNER COMPANIES INC
TANDY CORP
ICI WILMINGTON INC
PHH CORP INTERNOTES BOOK ENTRY
OCEAN ENERGY INC DEL
USA WASTE SVCS INC
CALENERGY INC
ENTERPRISE PRODS OPER LP
POTOMAC ELEC PWR CO
ROYAL CARIBBEAN CRUISES LTD
UNION PAC CORP
CVS CORP
ENSCO INTL INC
MALLINCKRODT GROUP INC
MEDIAONE GROUP INC MTN BE
UNION CAMP CORP
PSEG FDG TR I
PLATINUM UNDERWRITERS FIN INC
Price
100.29
104.75
102.35
102.35
103.1
102.61
102.26
102.34
102.77
104.32
103.96
103
101.9
103.41
103.31
103.58
102.98
103.25
102.04
102.06
101.45
101.62
103.54
103.56
101.15
103.09
104.45
103.33
103.27
101.9
100.82
103.58
104.21
100.15
102.73
103.13
103.99
100.01
103.33
104.56
103.1
103.02
103.04
101.57
102.17
Coupon(%) Maturity
2.75
9.875
6.125
6.35
7.6
6.5
6.05
6.15
7
8.875
8.375
7.375
5.625
7.75
7.4
7.5
6.763
7.125
5.625
5.5
5
5
7.125
7.25
4.625
6.75
8.18
6.95
7.05
5.6
4.375
7.125
7.63
4
6.25
7
5.75
3.875
6.75
7.75
6.5
6.83
6.5
5.381
6.371
15-Mar-07
15-Mar-07
15-Mar-07
1-Apr-07
1-Apr-07
15-Apr-07
15-Apr-07
1-May-07
1-May-07
1-May-07
1-May-07
1-May-07
1-May-07
6-May-07
15-May-07
1-Jun-07
15-Jun-07
15-Jun-07
15-Jun-07
1-Jul-07
1-Aug-07
15-Aug-07
15-Aug-07
15-Aug-07
15-Aug-07
15-Aug-07
15-Aug-07
1-Sep-07
15-Sep-07
15-Sep-07
1-Oct-07
1-Oct-07
15-Oct-07
15-Oct-07
15-Oct-07
15-Oct-07
15-Oct-07
1-Nov-07
15-Nov-07
15-Nov-07
15-Nov-07
15-Nov-07
15-Nov-07
16-Nov-07
16-Nov-07
YTM(%)
2.24%
1.62%
2.03%
2.53%
2.56%
2.50%
2.59%
2.78%
3.01%
2.67%
2.68%
3.05%
2.89%
2.94%
2.88%
2.87%
3.08%
3.11%
3.10%
3.08%
3.44%
3.33%
3.48%
3.57%
3.44%
3.56%
3.59%
3.66%
3.92%
3.78%
3.62%
3.83%
3.88%
3.87%
3.82%
4.20%
2.24%
3.87%
3.97%
3.96%
3.92%
4.30%
3.97%
4.07%
4.55%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
GENERAL MLS INC

LILLY INDS INC
AMERICAN FINL GROUP INC OHIO
PENNEY JC INC MTN BE
PRECISION CASTPARTS CORP
NEWS AMER INC
CNA FINL CORP
CENTURY TEL ENTERPRISES INC
CLEAR CHANNEL COMMUNICATIONS
SARA LEE CORP MTN BE
AMERICAN STD INC
CONSUMERS ENERGY CO
UNION PAC CORP
ARAMARK SVCS INC
AVNET INC
DOMINION RES INC VA NEW
IDEX CORP
LENFEST COMMUNICATIONS INC
MARSH & MCLENNAN COS INC
PEMEX PROJ FDG MASTER TR
TANGER PPTYS LTD PARTNERSHIP
HOSPITALITY PPTYS TR
KROGER CO
UNITED DOMINION RLTY TR MTNSBE
BECKMAN COULTER INC
GREATER BAY BANCORP
CAROLINA PWR & LT CO MTN BE
FORTUNE BRANDS INC
GOODRICH CORP
PROLOGIS
APPALACHIAN PWR CO
BERKLEY W R CORP
MIDAMERICAN ENERGY HLDGS NEW
TRW INC SR MEDTERMNTS BK EN
DUKE RLTY LTD PARTNERSHIP
AAG HLDG INC
CENTERPOINT ENERGY INC
NORTHEAST UTILS
ARCHSTONE-SMITH OPER TR
SARA LEE CORP MTN BE
PHILIP MORRIS COS INC
CAPITAL ONE FINL CORP
COX COMMUNICATIONS INC NEW
MILLER BREWING CO
PENNEY J C INC
CONTINENTAL CABLEVISION INC
TIME WARNER ENTMT CO LP
BALT GAS & ELEC CO MTN BE BONY
99.89
104.46
103.81
102.92
103.64
103.56
103.02
102.83
100.42
102.38
104.42
104.21
102.98
103.52
102.38
107.51
100.19
103.55
103.42
104.77
99.34
106.23
106.63
103.96
103.13
100.27
104.68
103.5
101.06
103.6
103.04
104.81
104.35
98.75
108.8
102.21
98.2
103.28
103.98
103.77
102.14
98.14
97.26
102.61
105.5
104.69
103.27
99.53
106
108.37
105.12
102.24
3.875
7.75
7.125
6.5
6.75
6.625
6.45
6.3
4.625
6
7.48
7.375
6.375
6.625
6.375
9.75
4.125
6.75
6.875
7.625
3.625
8.5
9.125
7
6.375
4.5
7.45
6.75
5.25
6.65
6.25
7.5
7.1
3.6
9.875
5.687
3.5
6.3
6.75
6.875
5.875
3.3
3
6.15
7.65
7.125
6.4
4.25
7.375
9
7.25
5.78
30-Nov-07
1-Dec-07
15-Dec-07
15-Dec-07
15-Dec-07
9-Jan-08
15-Jan-08
15-Jan-08
15-Jan-08
15-Jan-08
15-Jan-08
1-Feb-08
1-Feb-08
1-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
15-Feb-08
1-Mar-08
1-Mar-08
3-Mar-08
4-Mar-08
15-Mar-08
31-Mar-08
1-Apr-08
1-Apr-08
15-Apr-08
15-Apr-08
15-May-08
15-May-08
15-May-08
15-May-08
15-May-08
30-May-08
1-Jun-08
1-Jun-08
1-Jun-08
15-Jun-08
19-Jun-08
1-Jul-08
1-Aug-08
1-Aug-08
15-Aug-08
15-Aug-08
1-Sep-08
1-Sep-08
1-Oct-08
3.96%
4.16%
4.14%
4.21%
3.91%
3.97%
4.22%
4.21%
4.31%
4.24%
4.22%
4.35%
4.24%
4.11%
4.71%
4.50%
4.00%
4.27%
4.48%
4.30%
4.08%
4.16%
4.49%
4.31%
4.25%
4.32%
4.29%
4.43%
4.56%
4.32%
4.29%
4.46%
4.35%
4.35%
4.56%
4.37%
4.58%
4.32%
4.41%
4.65%
4.61%
4.39%
4.58%
4.65%
4.55%
4.59%
4.63%
4.50%
4.21%
4.65%
4.59%
4.66%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
CADBURY SCHWEPPES US FINANACE

TRIBUNE CO MTN BK MONT TR CO
MASCO CORP
RAYCHEM CORP DEL
UNIVISION COMMUNICATIONS INC
NEWS AMER HLDGS INC
CHANCELLOR MEDIA CORP LA
MAY DEPT STORES CO
UNION PAC CORP
WEYERHAEUSER CO
ALTRIA GROUP INC
SPRINT CAP CORP
TELECOM ITALIA CAP
WASTE MGMT INC DEL
HALLIBURTON CO MTN BE
LUBRIZOL CORP
TRIBUNE CO MTN BK MONT TR CO
CNA FINL CORP
EOP OPER LTD PARTNERSHIP EOP
OAKMONT ASSET TR
D R HORTON INC
VALASSIS COMMUNICATIONS INC
D R HORTON INC
EOP OPER LTD PARTNERSHIP EOP
CONSUMERS ENERGY CO
BRITISH SKY BROADCASTING GROUP
LENNAR CORP
PPL CAP FDG INC
SOUTHWESTERN PUB SVC CO
BURLINGTON NORTHN SANTA FE CP
COLONIAL BK MONTGOMERY ALA
MACK-CALI RLTY L P
PSEG PWR LLC
PENNSYLVANIA ELEC CO
UNION CARBIDE CORP
AMERICAN FINL GROUP INC OHIO
DTE ENERGY CO
UNION PAC RES GROUP INC
NIPSCO CAP MKTS INC MTN BE
ASHLAND INC MTN BE
GENERAL AMERICAN TRANS CORP
SPIEKER PPTYS L P
SPRINT CAP CORP
SEMPRA ENERGY
GATX FINL CORP
UNITED DOMINION REALTY TR INC
WILLAMETTE INDS INC MTN BE
98.66
98.17
101.08
102.07
105.11
97.91
105.5
106.18
102.61
105.55
103.01
101.96
103.31
103.2
98.55
103.98
102.12
102.14
101.26
103.79
98.2
98.51
100
104.43
103.38
106.5
97.69
100.05
104.77
106
98.92
103.55
103.58
107.31
106.04
97.58
103.09
102.99
105.64
104.24
106.02
106.73
105.38
104.7
105.94
103.97
97.78
99.84
109.44
105.77
103.96
104.17
3.875
3.875
5.5
5.75
7.2
3.875
7.375
8
5.95
7.25
5.95
5.625
6.2
6.125
4
6.5
5.625
5.875
5.67
6.6
4
4.514
5
6.8
6.625
8
4.1
4.8
6.875
7.625
4.33
6.2
6.125
8
7.25
3.75
6.125
6.7
7.125
6.65
7.3
7.72
6.86
6.75
7.25
6.375
4.25
4.75
8.875
7.125
6.5
6.45
1-Oct-08
1-Oct-08
6-Oct-08
15-Oct-08
15-Oct-08
15-Oct-08
17-Oct-08
1-Nov-08
1-Nov-08
1-Nov-08
1-Nov-08
4-Nov-08
15-Nov-08
15-Nov-08
15-Nov-08
15-Nov-08
1-Dec-08
1-Dec-08
8-Dec-08
15-Dec-08
15-Dec-08
22-Dec-08
15-Jan-09
15-Jan-09
15-Jan-09
1-Feb-09
15-Feb-09
17-Feb-09
23-Feb-09
1-Mar-09
1-Mar-09
1-Mar-09
15-Mar-09
15-Mar-09
15-Mar-09
1-Apr-09
1-Apr-09
1-Apr-09
15-Apr-09
15-Apr-09
15-Apr-09
17-Apr-09
1-May-09
1-May-09
1-May-09
1-May-09
15-May-09
15-May-09
1-Jun-09
15-Jun-09
15-Jun-09
18-Jun-09
4.55%
4.79%
4.96%
4.73%
4.68%
4.90%
4.67%
5.00%
4.69%
4.57%
4.50%
4.68%
4.63%
4.61%
4.69%
4.61%
4.64%
4.87%
5.08%
4.85%
4.82%
5.19%
5.00%
4.83%
5.12%
5.15%
5.09%
4.78%
4.84%
5.08%
4.78%
4.70%
4.63%
4.94%
4.73%
4.74%
4.85%
5.46%
4.84%
4.93%
4.86%
4.99%
4.72%
4.87%
4.88%
4.79%
5.13%
4.81%
5.19%
4.91%
4.98%
4.86%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
BRITISH SKY BROADCASTING GROUP

MAY DEPT STORES CO
PUBLIC SERVICE CO COLO
PULTE HOMES INC
NEW PLAN EXCEL RLTY TR INC MTN
DUKE CAP CORP
ELECTRONIC DATA SYS CORP
CLEVELAND ELEC ILLUM CO
FEDERAL REALTY INVT TR
DOMINION RES INC
WELLPOINT INC
COMCAST CORP NEW
TELECOM ITALIA CAP
TELECOM ITALIA CAP
COLONIAL RLTY LTD PARTNERSHIP
IBP INC
KROGER CO
SAFECO CORP
AMERICAN STD INC
AIFUL CORPORATION
PENNEY J C CORP INC
SEMPRA ENERGY
NISSAN MTR ACCEP CORP
AMERICAN ELEC PWR INC
METROPOLITAN EDISON CO
NEWS AMER INC
RAYTHEON CO
SCOTTISH PWR PLC
INTL PAPER CO
WASHINGTON MUT INC
MACK-CALI RLTY L P
NEWELL RUBBERMAID INC
NORFOLK SOUTHERN CORP
PEPCO HOLDINGS INC
UNION PAC CORP
EXELON CORP
NORTHERN BORDER PARTNERS L P
HARRAHS OPER INC
WILLIS NORTH AMER INC
WASTE MGMT INC DEL
PENNSYLVANIA ELEC CO UNSEC MTN
TRIBUNE CO NEW
DUKE ENERGY FIELD SVCS LLC
SAFEWAY INC
108.86
99.77
105.28
99.27
107.72
106.5
107.23
105.95
107.29
110.5
100.45
98.07
97.11
102.74
98.26
96.36
98.27
96.36
98.89
108.09
108.78
99.65
107.3
96.59
109.17
109.33
98.25
101.17
97.95
99.26
105.22
99.39
96.67
110.22
99.31
96.37
112.21
96.03
107.06
98.92
95.45
110.11
98
112.15
100.64
99.49
109.97
108.08
108.45
96.74
109.57
98.63
8.2
4.8
6.875
4.875
7.875
7.4
7.5
7.125
7.43
8.75
5.125
4.25
4.5
5.85
4.625
4
4.625
4
4.75
7.95
8.05
4.875
7.625
4.45
8
7.95
4.625
5.375
4.45
4.75
6.55
4.91
4
8.25
5.05
4
8.625
4
8
4.95
3.625
8.125
4.45
8.875
5.5
5.125
8.1
7.375
7.77
4.875
7.875
4.95
15-Jul-09
15-Jul-09
15-Jul-09
15-Jul-09
15-Aug-09
15-Sep-09
1-Oct-09
15-Oct-09
1-Nov-09
1-Dec-09
15-Dec-09
15-Dec-09
15-Jan-10
15-Jan-10
15-Jan-10
15-Jan-10
15-Jan-10
15-Jan-10
1-Feb-10
1-Feb-10
1-Feb-10
1-Feb-10
15-Feb-10
16-Feb-10
1-Mar-10
1-Mar-10
8-Mar-10
15-Mar-10
15-Mar-10
15-Mar-10
15-Mar-10
15-Mar-10
1-Apr-10
1-Apr-10
15-Apr-10
1-May-10
15-May-10
15-May-10
15-May-10
1-Jun-10
1-Jun-10
15-Jun-10
15-Jun-10
15-Jun-10
1-Jul-10
15-Jul-10
1-Aug-10
1-Aug-10
2-Aug-10
15-Aug-10
16-Aug-10
16-Aug-10
4.89%
4.88%
4.91%
5.15%
5.06%
5.09%
4.97%
5.06%
4.94%
5.23%
4.98%
4.88%
5.44%
4.97%
5.19%
5.18%
5.18%
5.18%
5.10%
5.36%
5.24%
4.99%
5.31%
5.54%
5.14%
5.04%
5.17%
5.01%
5.08%
4.98%
4.94%
5.10%
5.01%
5.12%
5.26%
5.09%
5.01%
5.18%
5.87%
5.26%
4.96%
5.18%
5.03%
5.32%
5.31%
5.27%
5.27%
5.09%
5.37%
5.80%
5.19%
5.33%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
SOVEREIGN BANCORP INC

CONAGRA FOODS INC
HEALTH CARE PPTY INVS INC MTN
NUVEEN INVTS INC
PUBLIC SERVICE CO OKLA
MOLSON COORS CAP FIN
BERKLEY W R CORP
ROYAL KPN NV
TELECOM ITALIA CAP
GTECH HLDGS CORP
HALLIBURTON CO
HALLIBURTON CO
CENTEX CORP
KINDER MORGAN ENERGY PARTNERS
MAY DEPT STORES CO
UNITRIN INC
COMCAST CORP NEW
NISOURCE FIN CORP
TEXAS EASTN TRANSMISSION CORP
XCEL ENERGY INC MINN
ISTAR FINL INC
RAYTHEON CO
VIRGINIA ELEC & PWR CO
KINDER MORGAN FINANCE CORP ULC
BOSTON SCIENTIFIC CORP
AGL CAP CORP
BRE PROPERTIES INC
FORTUNE BRANDS INC
RAYTHEON CO
RECKSON OPER PARTNERSHIP L P
WADDELL & REED FINL INC
WELLPOINT INC
SPRINT CAP CORP
CENTEX CORP
CARDINAL HEALTH INC
NORFOLK SOUTHERN CORP
VORNADO RLTY L P
RESIDENTIAL CAP CORP
SAFEWAY INC
NISSAN MTR ACCEP CORP
ALCAN INC
CSX CORP
COMCAST CORP NEW
98.83
106.57
109.89
98.23
99.76
99.03
98.89
99.25
99.56
97.77
108.83
98.3
98.13
101.26
101.78
96.64
107.46
119.01
97.98
101.14
110.92
107.86
107.06
107.87
98.23
102.61
103.82
97.56
95.83
95.94
107.48
108.54
99.56
99.3
98.41
100.43
99.57
106.08
108.95
108.8
110.5
106.44
106.76
101.11
100.42
104.16
101.11
105.27
106.3
101.18
101.05
104.6
4.8
7.65
7.875
4.875
5.15
5
4.85
4.85
5.125
4.65
8
4.875
4.75
5.5
5.5
4.55
7.5
10.625
4.875
5.45
7.875
7.3
7
7.125
4.75
6
6
4.5
5.35
4.25
7.125
7.45
5.125
4.85
5.15
5.6
5
6.75
7.625
7.875
8.75
6.75
6.75
5.6
6
6.5
5.625
6.45
6.75
6.25
5.5
6.75
1-Sep-10
15-Sep-10
15-Sep-10
15-Sep-10
15-Sep-10
15-Sep-10
15-Sep-10
22-Sep-10
30-Sep-10
1-Oct-10
1-Oct-10
1-Oct-10
15-Oct-10
15-Oct-10
15-Oct-10
1-Nov-10
1-Nov-10
1-Nov-10
1-Nov-10
15-Nov-10
15-Nov-10
1-Dec-10
1-Dec-10
15-Dec-10
15-Dec-10
15-Dec-10
15-Dec-10
15-Dec-10
5-Jan-11
12-Jan-11
14-Jan-11
15-Jan-11
15-Jan-11
15-Jan-11
15-Jan-11
15-Jan-11
15-Jan-11
30-Jan-11
30-Jan-11
1-Feb-11
2-Feb-11
15-Feb-11
15-Feb-11
15-Feb-11
22-Feb-11
1-Mar-11
14-Mar-11
15-Mar-11
15-Mar-11
15-Mar-11
15-Mar-11
15-Mar-11
5.12%
5.82%
5.15%
5.36%
5.21%
5.27%
5.16%
5.05%
5.24%
5.26%
5.57%
5.34%
5.25%
5.16%
5.02%
5.45%
5.49%
5.50%
5.42%
5.15%
4.99%
5.23%
5.14%
5.08%
5.21%
5.32%
5.00%
5.13%
6.46%
5.29%
5.20%
5.26%
5.24%
5.03%
5.56%
5.49%
5.11%
5.20%
5.34%
5.62%
6.03%
5.13%
5.05%
5.32%
5.89%
5.45%
5.35%
5.14%
5.18%
5.95%
5.24%
5.60%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp

COLONIAL RLTY LTD PARTNERSHIP
FEDERATED DEPT STORES INC DEL
KELLOGG CO
KROGER CO
RYDER SYS MTN BE
AOL TIME WARNER INC
ONEOK INC NEW
TRICON GLOBAL RESTAURANTS
VIACOM INC
ANADARKO FIN CO
EXELON CORP
HEALTHCARE RLTY TR
PREMCOR REFNG GROUP INC
RYDER SYS MTN BE
PUBLIC SERVICE CO OKLA
VIACOM INC
BLACK & DECKER CORP
DTE ENERGY CO
MATTEL INC MTN BE
BOSTON SCIENTIFIC CORP
EXELON GENERATION CO LLC
WHIRLPOOL CORP
TELEFONICA EMISONES SA
SABMILLER PLC
QUEST DIAGNOSTICS INC
ALLIED CAP CORP NEW
HEINZ H J FIN CO
LAFARGE COPPEE S A
PULTE HOMES INC
CNA FINL CORP
FIDELITY NATL FINL INC
REPUBLIC SVCS INC
CONAGRA FOODS INC
MAY DEPT STORES CO
SARA LEE CORP
DEVON FING CORP U L C
TYSON FOODS INC
TYCO INTL GROUP S A
CONSOLIDATED NAT GAS CO
PPL ENERGY SUPPLY LLC
FIRSTENERGY CORP
COVENTRY HEALTH CARE INC
WELLPOINT HEALTH NETWORK NEW
TEPPCO PARTNERS L P
CRH AMER INC
HEINZ H J FIN CO
104.92
97.94
105.47
106.23
105.84
98.64
105.13
106.64
114.09
100.74
106.03
105.83
110.51
103.69
102.41
93.69
97.67
105.21
107.17
106.78
104.6
101.75
106.95
102.89
102.72
104.06
109.69
102.61
107.1
106.81
105.66
102.97
108.88
102.17
104.05
106.39
106.31
108
103.04
107.34
108.8
105.61
103.77
104.64
104.95
99.86
104.87
106.38
108.03
106.4
94.29
102.43
6.75
4.8
6.625
6.6
6.8
5
6.75
7.125
8.875
5.75
6.75
6.75
8.125
6.125
5.95
4.4
4.7
6.625
7.125
7.05
7.3
6
6.95
6.125
5.984
6.2
7.5
6.625
6.75
7
6.625
6.15
7.875
6
7.3
6.75
6.75
7.45
6.25
6.875
8.25
6.375
6.25
6.4
6.45
5.875
6.375
6.75
7.625
6.95
5
6
15-Mar-11
1-Apr-11
1-Apr-11
1-Apr-11
1-Apr-11
1-Apr-11
15-Apr-11
15-Apr-11
15-Apr-11
30-Apr-11
1-May-11
1-May-11
1-May-11
1-May-11
2-May-11
15-May-11
15-May-11
15-May-11
1-Jun-11
1-Jun-11
13-Jun-11
15-Jun-11
15-Jun-11
15-Jun-11
20-Jun-11
1-Jul-11
12-Jul-11
15-Jul-11
15-Jul-11
15-Jul-11
15-Jul-11
15-Jul-11
1-Aug-11
15-Aug-11
15-Aug-11
15-Aug-11
15-Sep-11
15-Sep-11
15-Sep-11
30-Sep-11
1-Oct-11
15-Oct-11
1-Nov-11
1-Nov-11
15-Nov-11
15-Jan-12
15-Jan-12
15-Feb-12
15-Feb-12
15-Mar-12
15-Mar-12
15-Mar-12
5.52%
5.31%
5.28%
5.07%
5.36%
5.33%
5.49%
5.49%
5.41%
5.57%
5.28%
5.33%
5.55%
5.23%
5.36%
5.94%
5.26%
5.36%
5.40%
5.42%
6.18%
5.58%
5.30%
5.43%
5.34%
5.24%
5.23%
6.00%
5.10%
5.40%
5.30%
5.45%
5.79%
5.50%
6.34%
5.28%
5.32%
5.62%
5.55%
5.22%
6.22%
5.12%
5.41%
5.36%
5.35%
5.91%
5.33%
5.39%
5.89%
5.60%
6.23%
5.49%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
JEFFERIES GROUP INC NEW

SPRINT CAP CORP
WEYERHAEUSER CO
MEADWESTVACO CORP
PROLOGIS
KROGER CO
UNION PAC CORP
VALERO ENERGY CORP NEW
AOL TIME WARNER INC
STARWOOD HOTELS&RESORTS WRLDWD
ARAMARK CORP
PSEG PWR LLC
KENNAMETAL INC
HEALTH CARE PPTY INVS INC
NEXFOR INC
MAY DEPT STORES CO
CONTINENTAL CORP
PEPCO HOLDINGS INC
VIACOM INC
KINDER MORGAN INC
SAFECO CORP
ALCAN INC
AMERISOURCEBERGEN CORP
CINCINNATI GAS & ELEC CO
MIDAMERICAN ENERGY HLDGS NEW
STANCORP FINL GROUP INC
ASTORIA FINL CORP
DEVELOPERS DIVERSIFIED RLTY CO
PLAINS ALL AMERN PIPELINE L P
INTL PAPER CO
CENDANT CORP
USA INTERACTIVE
SEMPRA ENERGY
AEP TEX CENT CO
BERKLEY W R CORP
DUKE CAP CORP
AEP TEX NORTH CO
NATIONAL FUEL GAS CO N J
TXU ENERGY CO LLC
CENTERPOINT ENERGY RESOURCES
RESIDENTIAL CAP CORP
D R HORTON INC
FUND AMERN COS INC
M D C HLDGS INC
EMBARQ CORP
110.29
106.26
102.65
113.02
105.51
105.65
100.34
105.65
106.35
107.17
105.71
109
88.5
107.03
107.32
104.07
103.86
108.11
111.78
109.71
104.2
100.47
98.52
107
97.28
99.08
101.45
103.01
107.21
101.39
99.52
111.18
102.39
106
96.38
115.84
103.3
102.64
99.82
101.87
102.92
99.86
107.18
97
105.19
111.45
102.29
103
99.08
94.15
103.13
102.5
7.75
7.125
6.25
8.375
6.75
6.85
5.5
6.75
6.5
6.875
6.875
7.875
5
6.95
7.2
6.45
6.25
7.25
8
8.375
6.45
5.625
6.5
7.25
4.875
5.625
5.7
5.875
6.875
5.75
5.375
7.75
5.85
7.375
5.75
9.125
7
6
5.5
5.875
6.25
5.5
7.125
5.25
7
7.875
6.5
6.875
5.875
5.5
6.738
7
15-Mar-12
15-Mar-12
15-Mar-12
15-Mar-12
15-Mar-12
1-Apr-12
1-Apr-12
15-Apr-12
15-Apr-12
15-Apr-12
1-May-12
1-May-12
1-Jun-12
1-Jun-12
15-Jun-12
25-Jun-12
30-Jun-12
1-Jul-12
15-Jul-12
15-Aug-12
15-Aug-12
15-Aug-12
1-Sep-12
1-Sep-12
15-Sep-12
15-Sep-12
15-Sep-12
1-Oct-12
1-Oct-12
15-Oct-12
15-Oct-12
15-Oct-12
30-Oct-12
15-Jan-13
15-Jan-13
15-Jan-13
15-Jan-13
1-Feb-13
15-Feb-13
15-Feb-13
15-Feb-13
1-Mar-13
1-Mar-13
1-Mar-13
15-Mar-13
1-Apr-13
17-Apr-13
1-May-13
15-May-13
15-May-13
1-Jun-13
15-Jun-13
5.58%
5.79%
5.69%
5.62%
5.59%
5.66%
5.43%
5.57%
5.19%
5.39%
5.69%
5.99%
7.48%
5.51%
5.70%
5.62%
5.47%
5.61%
5.63%
6.40%
5.62%
5.53%
6.80%
5.86%
5.41%
5.81%
5.42%
5.29%
5.47%
5.48%
5.47%
5.58%
5.39%
6.22%
6.45%
6.10%
6.36%
5.51%
5.53%
5.53%
5.71%
5.53%
5.79%
5.81%
6.03%
5.77%
6.07%
6.32%
6.04%
6.59%
6.16%
6.54%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
CYTEC INDS INC

HARLEYSVILLE GROUP INC
PACKAGING CORP AMER
TELE COMMUNICATIONS INC
CAROLINA TEL & TELEG CO
PSI ENERGY INC
POTOMAC ELEC PWR CO
TELECOM ITALIA CAP
COMMERCE GROUP INC MASS
CLEVELAND ELEC ILLUM CO
IMCERA GROUP INC
PLAINS ALL AMERN PIPELINE L P
CENTERPOINT ENERGY RES CORP
COMCAST CORP NEW
EXELON GENERATION CO LLC
MACK-CALI RLTY L P
DUKE CAP CORP
PACIFIC GAS & ELEC CO
CORNING INC
TOLL BROS FIN CORP
METROPOLITAN EDISON CO
GLENCORE FDG LLC
POTOMAC ELEC PWR CO
MAGELLAN MIDSTREAM PRTNRS LP
OHIO CAS CORP
ARIZONA PUB SVC CO
WESTAR ENERGY INC
MAYTAG CORP MEDTERM NTS BK ENT
D R HORTON INC
TELECOM ITALIA CAP
LUBRIZOL CORP
ATMOS ENERGY CORP
INDIANA MICH PWR CO
JONES APPAREL GROUP INC /
COMCAST CORP NEW
ONCOR ELEC DELIVERY CO
APPALACHIAN PWR CO
CENTURYTEL INC
PULTE HOMES INC
INTL PAPER CO
ARCHSTONE-SMITH OPER TR
ODYSSEY RE HLDGS CORP
HEALTH CARE REIT INC
MAYTAG CORP MEDTERM NTS BK ENT
AMERICAN ELEC PWR INC
CENTERPOINT ENERGY INC
92.39
98.25
98.69
111.33
102.5
96.97
97.72
96.36
105.59
101.5
100.29
99.67
106.39
99.53
101.08
97.26
98.57
96.25
98.73
96.38
102.14
90.12
96.25
95.6
95.09
103.26
106.57
99.97
102.94
96.23
102.31
92.88
95
93.18
97.54
94.74
95.95
89.05
95.24
104.78
104.06
95.38
91.87
93.33
93.79
96.22
97.18
95.13
98.86
92
96.81
106.09
4.6
5.75
5.75
7.875
6.75
5
4.95
5.25
6.625
6.875
5.95
5.65
7
5.625
5.95
5.3
5.35
5.125
5.5
4.8
5.9
4.95
4.875
6
4.65
6.45
7.3
5.8
6
5.375
6.45
5.5
5.625
4.95
5.5
4.95
5.05
5.125
5
6.5
6.375
4.95
5
5.2
5
5.3
5.25
6.875
5.875
5
5.25
6.85
1-Jul-13
15-Jul-13
1-Aug-13
1-Aug-13
15-Aug-13
15-Sep-13
15-Nov-13
15-Nov-13
1-Dec-13
1-Dec-13
9-Dec-13
15-Dec-13
15-Dec-13
15-Dec-13
15-Jan-14
15-Jan-14
15-Jan-14
15-Feb-14
1-Mar-14
1-Mar-14
15-Mar-14
15-Mar-14
1-Apr-14
15-Apr-14
15-Apr-14
1-Jun-14
15-Jun-14
30-Jun-14
1-Jul-14
15-Jul-14
15-Aug-14
15-Sep-14
15-Sep-14
30-Sep-14
1-Oct-14
15-Oct-14
15-Nov-14
15-Nov-14
1-Dec-14
15-Jan-15
15-Jan-15
1-Feb-15
15-Feb-15
15-Feb-15
1-Mar-15
1-Apr-15
1-May-15
1-May-15
15-May-15
15-May-15
1-Jun-15
1-Jun-15
5.97%
6.06%
5.98%
5.87%
6.30%
5.52%
5.33%
5.87%
5.68%
6.61%
5.90%
5.70%
5.91%
5.70%
5.77%
5.76%
5.59%
5.75%
5.71%
5.39%
5.55%
6.63%
5.48%
6.74%
5.44%
5.92%
6.23%
5.80%
5.53%
5.98%
6.08%
6.65%
6.43%
6.02%
5.88%
5.77%
5.67%
6.89%
5.73%
5.77%
5.76%
5.65%
6.25%
6.22%
5.94%
5.86%
5.66%
7.65%
6.04%
6.20%
5.72%
5.95%
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
Corp
HARRAHS OPER INC

CENTEX CORP
CONSTELLATION ENERGY GROUP INC
EXELON CORP
ONEOK INC NEW
TELECOM ITALIA CAP
NEWS AMER HLDGS INC
EQUITY ONE
PENNEY JC INC MTN BE
COMCAST CORP NEW
HARRAHS OPER INC
WHIRLPOOL CORP
PENNEY J C INC
95.25
93.66
92.05
94.74
95.6
95.96
94.47
112.59
95.92
106.33
99.4
100.5
102.12
102.83
113.86
5.625
5.25
4.55
4.9
5.2
5.5
5.25
7.6
5.375
6.875
5.85
6.5
7.25
6.5
7.65
1-Jun-15
15-Jun-15
15-Jun-15
15-Jun-15
15-Jun-15
1-Oct-15
1-Oct-15
11-Oct-15
15-Oct-15
15-Oct-15
15-Nov-15
1-Jun-16
15-Jun-16
15-Jun-16
15-Aug-16
6.34%
6.19%
5.71%
5.66%
5.84%
6.08%
6.05%
5.81%
5.96%
5.97%
5.93%
6.43%
6.95%
6.11%
5.80%
ITH MATURITY 0.5 - 10 YEARS
Fitch
rating
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
Callable
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Years to
maturity
0.59 <-- =(E4-DATE(2006,8,11))/365
0.59
0.59
0.64
0.64
0.68
0.68
7%
0.72
0.72
0.72
6%
0.72
0.72
0.72
5%
0.73
0.76
0.81
4%
0.84
0.84
0.84
3%
0.89
0.97
2%
1.01
1.01
1.01
1%
1.01
0
1
2
1.01
1.01
1.06
1.10
1.10
1.14
1.14
1.18
1.18
1.18
1.18
1.18
1.22
1.26
1.26
1.26
1.26
1.26
1.27
1.27
BBB Bond Yields, 11Aug06
Yield
Current
yield
2.742
9.427
5.984
6.204
7.371
6.334
5.917
6.009
6.811
8.508
8.056
7.16
5.52
7.494
7.163
7.241
6.567
6.901
5.513
5.389
4.928
4.92
6.882
7.001
4.572
6.547
7.832
6.726
6.827
5.496
4.339
6.879
7.322
3.994
6.084
6.787
5.529
3.875
6.532
7.412
6.305
6.63
6.308
5.298
6.236
y = 0.0001x
5
Maturity
3.879
7.419
6.863
6.316
6.513
6.397
6.261
6.127
4.606
5.86
7.163
7.077
6.19
6.4
6.227
9.069
4.117
6.519
6.647
7.278
3.649
8.002
8.558
6.733
6.181
4.488
7.117
6.522
5.195
6.419
6.066
7.156
6.804
3.645
9.077
5.564
3.564
6.1
6.492
6.626
5.752
3.362
3.084
5.993
7.251
6.806
6.198
4.27
6.958
8.305
6.897
5.653
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
1.30
1.31
1.35
1.35
1.35
1.41
1.43
1.43
1.43
1.43
1.43
1.48
1.48
1.48
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.56
1.56
1.56
1.56
1.59
1.64
1.64
1.64
1.68
1.68
1.76
1.76
1.76
1.76
1.76
1.80
1.81
1.81
1.81
1.85
1.86
1.89
1.98
1.98
2.01
2.01
2.06
2.06
2.14
3.928
3.947
5.441
5.633
6.85
3.958
6.991
7.535
5.798
6.869
5.776
5.517
6.001
5.935
4.059
6.251
5.508
5.752
5.599
6.359
4.073
4.582
5
6.511
6.409
7.512
4.197
4.797
6.562
7.193
4.377
5.987
5.913
7.455
6.837
3.843
5.942
6.505
6.745
6.38
6.886
7.233
6.51
6.447
6.843
6.132
4.347
4.758
8.11
6.736
6.252
6.192
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
2.14
2.14
2.16
2.18
2.18
2.18
2.19
2.23
2.23
2.23
2.23
2.24
2.27
2.27
2.27
2.27
2.31
2.31
2.33
2.35
2.35
2.37
2.43
2.43
2.43
2.48
2.52
2.52
2.54
2.56
2.56
2.56
2.59
2.59
2.59
2.64
2.64
2.64
2.68
2.68
2.68
2.68
2.72
2.72
2.72
2.72
2.76
2.76
2.81
2.85
2.85
2.85
7.532
4.811
6.53
4.911
7.311
6.948
6.994
6.725
6.925
7.919
5.102
4.334
4.634
5.694
4.707
4.151
4.706
4.151
4.803
7.355
7.4
4.892
7.106
4.607
7.328
7.271
4.707
5.313
4.543
4.785
6.225
4.94
4.138
7.485
5.085
4.151
7.686
4.165
7.473
5.004
3.798
7.379
4.541
7.914
5.465
5.151
7.366
6.824
7.165
5.039
7.187
5.019
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
2.93
2.93
2.93
2.93
3.01
3.10
3.14
3.18
3.23
3.31
3.35
3.35
3.43
3.43
3.43
3.43
3.43
3.43
3.48
3.48
3.48
3.48
3.52
3.52
3.56
3.56
3.58
3.59
3.59
3.59
3.59
3.59
3.64
3.64
3.68
3.72
3.76
3.76
3.76
3.81
3.81
3.85
3.85
3.85
3.89
3.93
3.98
3.98
3.98
4.01
4.02
4.02
4.857
7.178
7.166
4.963
5.162
5.049
4.905
4.886
5.148
4.756
7.351
4.959
4.84
5.432
5.404
4.708
6.979
8.928
4.976
5.389
7.1
6.768
6.538
6.605
4.836
5.848
5.779
4.612
5.583
4.43
6.629
6.864
5.148
4.884
5.233
5.576
5.022
6.363
6.998
7.238
7.919
6.342
6.322
5.538
5.975
6.24
5.563
6.127
6.35
6.177
5.443
6.453
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
4.06
4.10
4.10
4.10
4.10
4.10
4.10
4.12
4.14
4.14
4.14
4.14
4.18
4.18
4.18
4.23
4.23
4.23
4.23
4.27
4.27
4.31
4.31
4.35
4.35
4.35
4.35
4.35
4.41
4.42
4.43
4.43
4.43
4.43
4.43
4.43
4.43
4.47
4.47
4.48
4.48
4.52
4.52
4.52
4.54
4.56
4.59
4.59
4.59
4.59
4.59
4.59
6.433
4.901
6.282
6.213
6.425
5.069
6.421
6.681
7.779
5.708
6.366
6.378
7.352
5.907
5.81
4.696
4.812
6.297
6.648
6.603
6.979
5.897
6.498
5.953
5.825
5.958
6.837
6.457
6.303
6.554
6.27
5.973
7.233
5.872
7.016
6.345
6.349
6.898
6.066
6.405
7.583
6.036
6.023
6.116
6.146
5.884
6.079
6.345
7.058
6.532
5.303
5.858
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
4.59
4.64
4.64
4.64
4.64
4.64
4.68
4.68
4.68
4.72
4.72
4.72
4.72
4.72
4.73
4.76
4.76
4.76
4.81
4.81
4.84
4.85
4.85
4.85
4.86
4.89
4.92
4.93
4.93
4.93
4.93
4.93
4.98
5.01
5.01
5.01
5.10
5.10
5.10
5.14
5.14
5.18
5.23
5.23
5.27
5.43
5.43
5.52
5.52
5.60
5.60
5.60
7.027
6.705
6.088
7.41
6.397
6.483
5.481
6.389
6.112
6.415
6.504
7.225
5.65
6.493
6.709
6.198
6.018
6.706
7.157
7.634
6.19
5.599
6.598
6.776
5.012
5.677
5.619
5.703
6.413
5.671
5.401
6.97
5.713
6.958
5.966
7.877
6.777
5.846
5.51
5.767
6.073
5.508
6.648
5.412
6.654
7.066
6.354
6.675
5.93
5.841
6.533
6.829
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
5.60
5.60
5.60
5.60
5.60
5.64
5.64
5.68
5.68
5.68
5.73
5.73
5.81
5.81
5.85
5.88
5.89
5.89
5.93
6.02
6.02
6.02
6.06
6.06
6.10
6.10
6.10
6.15
6.15
6.18
6.18
6.18
6.22
6.44
6.44
6.44
6.44
6.48
6.52
6.52
6.52
6.56
6.56
6.56
6.60
6.64
6.69
6.73
6.76
6.76
6.81
6.85
4.979
5.852
5.827
7.074
6.585
5.156
5.066
5.449
6.274
6.773
5.933
5.668
6.58
5.652
5.887
5.449
5.428
5.324
5.571
4.98
5.776
5.493
5.065
6.276
4.89
6.246
6.85
5.802
5.829
5.585
6.304
5.922
5.921
5.312
5.639
5.225
5.263
5.755
5.25
6.203
6.126
5.19
5.443
5.571
5.331
5.508
5.402
7.227
5.942
5.435
5.423
6.457
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
6.89
6.93
6.98
6.98
7.02
7.10
7.27
7.27
7.31
7.31
7.33
7.35
7.35
7.35
7.44
7.44
7.44
7.52
7.56
7.56
7.60
7.60
7.64
7.68
7.68
7.81
7.85
7.89
7.89
7.93
8.02
8.10
8.10
8.14
8.15
8.18
8.27
8.27
8.31
8.44
8.44
8.48
8.52
8.52
8.56
8.64
8.73
8.73
8.76
8.76
8.81
8.81
5.906
5.606
4.943
5.172
5.439
5.732
5.557
6.75
5.604
6.466
5.886
6.468
7.099
6.321
6.719
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
BBB
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
8.81
8.85
8.85
8.85
8.85
9.15
9.15
9.17
9.18
9.18
9.27
9.81
9.85
9.85
10.02
Bond Yields, 11Aug06
y = 0.0001x3 - 0.0023x2 + 0.0152x + 0.0221

R = 0.8479
6
Maturity
10
11
COMPUTING KRAFT'S rD FROM A YIELD CURVE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
YTM=0.0001*time3-0.0023*time2+0.0152*time+0.0221
Average time to maturity (years)
Yield
5
5.31% <-- =0.0001*B2^3-0.0023*B2^2+0.0152*B2+0.0221
Sensitivity analysis
Years to maturity
3
4
5
6
7
8
9
10
11
4.97%
5.25%
5.31%
5.21%
5.01%
4.77%
4.55%
4.41%
4.41%
Average time to maturity (years)

Yield
Sensitivity analysis
Years to maturity
3
4
5
6
7
8
9
10
11
<-- =B3 , table header
1
0.03444
<-- =B19 , table header

4.97%
5.25%
5.31%
5.21%
5.01%
4.77%
4.55%
4.41%
4.41%
KRAFT: COST OF EQUITY rE BASED ON DIVIDENDS

1
2 Stock price, end 2005
27.75
0.92 <-- =B25*4
Gordon
cost
of
equity,
r
4
E
5
Using growth rate Dec01-Dec05
19.15% <-- =B3*(1+B29)/B2+B29
6
7
Using growth rate Dec03-Dec05
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Date
20-Dec-01
13-Mar-02
26-Jun-02
12-Sep-02
19-Dec-02
12-Mar-03
25-Jun-03
11-Sep-03
18-Dec-03
11-Mar-04
23-Jun-04
10-Sep-04
20-Dec-04
11-Mar-05
24-Jun-05
2-Sep-05
22-Dec-05
16.79% <-- =B3*(1+B32)/B2+B32

Dividends
per share
0.130
0.130
0.130
0.150
0.150
0.150
0.150
0.180
0.180
0.180
0.180
0.205
0.205
0.205
0.205
0.230
0.230
Computing the growth rate of dividends

Quarterly growth, Dec01-Dec05
Annualized
3.63% <-- =(B25/B9)^(1/16)-1

15.33% <-- =(1+B28)^4-1
Quarterly growth, Dec03-Dec05

Annualized
3.11% <-- =(B25/B17)^(1/8)-1

13.04% <-- =(1+B31)^4-1
A
1
2
3
4
5
6
7
8
9
10
KRAFT: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY

Shares outstanding
Share price, end 2005
Equity value, E
End 2005 total equity payout
Number of high-growth years
Cost of equity, rE, using the

11 function twostagegordon
12
1,669,880,755
27.75
46,339,190,951 <-- =B2*B3
2,612,000,000 <-- =E18
20.00% <-- Guess
3 <-- Guess
6% <-- Guess
Stock
Dividends paid
13
Date
repurchases
14
31-Dec-01
170,000,000
225,000,000
15
31-Dec-02
372,000,000
936,000,000
16
31-Dec-03
372,000,000
1,089,000,000
17
31-Dec-04
688,000,000
1,280,000,000
18
31-Dec-05
1,175,000,000
1,437,000,000
19
Growth rates
20
Four year
62.14%
58.97%
21
Two year
77.72%
14.87%
22
23
24
25
26 Note: "Stock issuance" is net proceeds from Class A common stock
Stock issuance
8,425,000,000
ON CASH1 FLOW TO EQUITY

2
3
4
5
6
7
8
9
10
n(B4,B5,B7,B8,B9)
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Cash flow to
equity holders
395,000,000 <-- =B14+C14-D14
-7,117,000,000 <-- =B15+C15-D15
1,461,000,000
1,968,000,000
2,612,000,000
60.36% <-- =(E18/E14)^(1/4)-1
33.71% <-- =(E18/E16)^(1/2)-1
1
2
3
4
5
6
7
8
9
COMPUTING THE COST OF EQUITY rE FOR KRAFT USING THE

MARKET PRICE/EARNINGS MULTIPLE TO COMPUTE E(rM)
Market price/earnings multiple, December 2005
Anticipated growth of equity cash flow
18
50.00%
6.00%
8.94%
Kraft cost of equity calculations

Kraft beta
Kraft tax rate, TC
0.4700
29.37%

4.93%
Kraft
cost
of
equity,
r
11
E,Kraft
12
Classic CAPM
6.82%
13
Tax-adjusted CAPM
6.05%
14
EQUITY rE FOR KRAFT USING THE

GS MULTIPLE
TO COMPUTE E(rM)
1
2
3
4
5 <-- =B3*(1+B4)/B2+B4
6
7
8 <-- From Yahoo
9 <-- Computed from Kraft financials
10
11
12 <-- =B10+B8*(B5-B10)
13 <-- =B10*(1-B9)+B8*(B5-B10*(1-B9))
14
15
A
1
2
3
4
5
6
7
8
COMPUTING THE WACC FOR KRAFT

Shares outstanding
Equity value, E
Net debt, D
1,669,880,755
27.75
46,339,190,951
10,884,000,000
WACC based on Gordon per-share dividends and interest from financial statements
Cost of equity, rE
16.79%
9 Cost of debt, rD
5.50%
10 Tax rate, TC
29.37%
11 WACC
14.33%
12
13 WACC based on Gordon equity payouts and interest from financial statements
14 Cost of equity, rE
14.46%
15 Cost of debt, rD
5.50%
16
17
18
19
20
Tax rate, TC
WACC
29.37%
12.45%
WACC based on classic CAPM and interest from financial statements

Cost of equity, rE
6.82%
21 Cost of debt, rD
5.50%
22 Tax rate, TC
29.37%
23 WACC
6.26%
24
25 WACC based on tax-adjusted CAPM and interest from financial statements
6.05%
27 Cost of debt, rD
5.50%
28 Tax rate, TC
29 WACC
29.37%
5.64%
COMPUTING
1
THE WACC FOR KRAFT
2
3
4
5
6
hare dividends7 and interest from financial statements
8 <-- ='Page 71'!B6
9 <-- ='Page 67'!B13
10 <-- ='Kraft 10K, 2005'!B160

11 <-- =$B$4/($B$4+$B$5)*B8+$B$5/($B$4+$B$5)*B9*(1-$B$10)
12
y payouts and13
interest from financial statements
14 <-- ='Page 72, top'!B11
15 <-- ='Page 67'!B13
16 <-- ='Kraft 10K, 2005'!B160
17 <-- =$B$4/($B$4+$B$5)*B14+$B$5/($B$4+$B$5)*B15*(1-$B$10)
18
and interest 19
from financial statements
20 <-- ='Page 72, bottom'!B12
21 <-- ='Page 67'!B13
22 <-- ='Kraft 10K, 2005'!B160

23 <-- =$B$4/($B$4+$B$5)*B20+$B$5/($B$4+$B$5)*B21*(1-$B$10)
24
CAPM and interest
25 from financial statements
26 <-- ='Page 72, bottom'!B13
27 <-- ='Page 67'!B13
28 <-- ='Kraft 10K, 2005'!B160
29 <-- =$B$4/($B$4+$B$5)*B26+$B$5/($B$4+$B$5)*B27*(1-$B$10)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
TYSON: COST OF EQUITY rE BASED

ON DIVIDENDS
Stock price, 11Aug06
Current dividend, D0
Dividend growth rate
Gordon cost of equity, rE
Date
29-Aug-01
28-Nov-01
27-Feb-02
29-May-02
28-Aug-02
26-Nov-02
26-Feb-03
28-May-03
27-Aug-03
26-Nov-03
26-Feb-04
27-May-04
30-Aug-04
29-Nov-04
25-Feb-05
30-Aug-05
27-Feb-06
30-May-06
13.45
0.16 <-- =B25*4
0%
1.19% <-- =B3*(1+B4)/B2+B4
Dividends
per share
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
A
1
2
3
4
5
6
7
8
9
10
TYSON: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY

Shares outstanding
Share price, 11Aug06
Equity value, E
Current (Aug06) total equity payout
Number of high-growth years
Cost of equity, rE, using the function

11 twostagegordon
12
13
14
15
16
17
18
19
20
21
Date
2001
2002
2003
2004
2005
Growth rates
Four year
Two year
354,820,000
13.45
4,772,329,000 <-- =B2*B3
81,631,562 <-- =E18*(1+B7)^0.75
10.00% <-- Guess
3 <-- Guess
2% <-- Guess

Stock
Dividends paid
repurchases
48,000,000
35,000,000
19,000,000
58,000,000
41,000,000
54,000,000
72,000,000
55,000,000
45,000,000
55,000,000
-1.60%
4.76%
11.96%
0.92%
Stock issuance
34,000,000
0
0
43,000,000
24,000,000
ON CASH 1FLOW TO EQUITY

2
3
4
5
6
7
8
9
10
n(B4,B5,B7,B8,B9)
11
12
13
14
15
16
17
18
19
20
21
Cash flow to
equity holders
49,000,000 <-- =B14+C14-D14
77,000,000 <-- =B15+C15-D15
95,000,000
84,000,000
76,000,000
11.60% <-- =(E18/E14)^(1/4)-1
-10.56% <-- =(E18/E16)^(1/2)-1
1
2
3
4
5
6
7
8
9
COMPUTING THE COST OF EQUITY rE FOR TYSON USING THE

Market price/earnings multiple, August 2006
17
50.00%
6.00%
9.12%
Tyson cost of equity calculations

Tyson beta
Tyson tax rate, TC
0.20
29.55%

4.93%
Tyson
cost
of
equity,
r
11
E,Kraft
12
Classic CAPM
5.77%
13
Tax-adjusted CAPM
4.60%
14
EQUITY rE FOR TYSON USING THE

GS MULTIPLE
TO COMPUTE E(rM)
1
2
3
4
5 <-- =B3*(1+B4)/B2+B4
6
7
8 <-- From Yahoo
9 <-- Computed from Tyson financials
10
11
12 <-- =B10+B8*(B5-B10)
13 <-- =B10*(1-B9)+B8*(B5-B10*(1-B9))
14
15
A
1
2
3
4
5
6
7
8
9
10
COMPUTING THE COST OF DEBT FOR TYSON

Current debt
Long term debt
Net debt
Interest paid
Interest cost
2005
40,000,000
126,000,000
2,869,000,000
2,955,000,000
2004
33,000,000
338,000,000
3,024,000,000
3,329,000,000 <-- =C5+C4-C3
227,000,000
7.22% <-- =B8/AVERAGE(B6:C6)
A
1
2
3
4
5
6
7
8
COMPUTING THE WACC FOR TYSON

Shares outstanding
Equity value, E
Net debt, D
354,820,000
13.45
4,772,329,000
2,955,000,000
Cost of equity, rE
1.19%
9 Cost of debt, rD
7.22%
10 Tax rate, TC
29.55%
11 WACC
2.68%
12
4.18%
15 Cost of debt, rD
7.22%
16
17
18
19
20
Tax rate, TC
WACC
29.55%
4.53%

Cost of equity, rE
5.77%
21 Cost of debt, rD
7.22%
22 Tax rate, TC
29.55%
23 WACC
5.51%
24
4.60%
27 Cost of debt, rD
7.22%
28 Tax rate, TC
29 WACC
30
31 Estimated WACC?
29.55%
4.79%
4.94%
COMPUTING
1
THE WACC FOR TYSON
2
3
4
5
6
8 <-- ='Page 74'!B5
9 <-- ='Page 76, bottom'!B10
10 <-- ='Tyson income statement'!B31

11 <-- =$B$4/($B$4+$B$5)*B8+$B$5/($B$4+$B$5)*B9*(1-$B$10)
12
y payouts and13
14 <-- ='Page 75'!B11
15 <-- ='Page 76, bottom'!B10
17 <-- =$B$4/($B$4+$B$5)*B14+$B$5/($B$4+$B$5)*B15*(1-$B$10)
18
and interest 19
20 <-- ='Page 76, top'!B12
21 <-- ='Page 76, bottom'!B10

23 <-- =$B$4/($B$4+$B$5)*B20+$B$5/($B$4+$B$5)*B21*(1-$B$10)
24
CAPM and interest
26 <-- ='Page 76, top'!B13
27 <-- ='Page 76, bottom'!B10
29 <-- =$B$4/($B$4+$B$5)*B26+$B$5/($B$4+$B$5)*B27*(1-$B$10)
30
31 <-- =AVERAGE(B29,B23,B17)
CASCADE: COST OF EQUITY rE BASED ON DIVIDENDS

Dividend growth
1
2 Share price, 31jan06
4 Gordon cost of equity, rE
5
Using growth since 16-Feb-99
6
Using growth since 02-Jan-04
7
Using growth since 29-Dec-04
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
rate computed on daily basis
Date
16-Feb-99
18-May-99
17-Aug-99
1-Dec-99
22-Feb-00
16-May-00
24-Aug-00
29-Nov-02
26-Mar-03
25-Jun-03
18-Sep-03
2-Jan-04
29-Mar-04
23-Jun-04
20-Sep-04
29-Dec-04
28-Mar-05
1-Jul-05
4-Oct-05
3-Jan-06
50.69
0.60 <-- =B29*4
7.32% <-- =B3*(1+B33)/B2+B33
18.11% <-- =B3*(1+B36)/B2+B36
26.10% <-- =B3*(1+B39)/B2+B39
Dividends
per share
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.11
0.11
0.11
0.11
0.12
0.12
0.12
0.15
0.15
Days between
dividend payments
91
91
106
83
84
100
827
117
91
85
106
87
86
89
100
89
95
95
91
<-- =A11-A10
<-- =A12-A11
Computing the growth rate of dividends

Daily growth, 16-Feb-99 - 03-Jan-06
Annualized
0.0161% <-- =(B29/B10)^(1/(A29-A10))-1

6.07% <-- =(1+B32)^365-1
Daily growth, 02-Jan-04 - 03-Jan-06

Annualized
0.0424% <-- =(B29/B21)^(1/(A29-A21))-1

16.73% <-- =(1+B35)^365-1
Daily growth, 29-Dec-04 - 03-Jan-06

Annualized
0.060% <-- =(B29/B25)^(1/(A29-A25))-1

24.62% <-- =(1+B38)^365-1
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
CASCADE: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY

Shares outstanding
Share price, 31jan06
Equity value, E
2005 total equity payout
Growth rate of payouts
Cost of equity, rE
Date
1/31/2001
1/31/2002
1/31/2003
1/31/2004
1/31/2005
1/31/2006
12,536,000
50.69
635,449,840
3,904,000
9.78%
10.46%
Stock
repurchases
0
1,354,000
1,396,000
0
<-<-<-<--
=B2*B3
=E16
=E17
=B5*(1+B6)/B4+B6
Dividends paid
2,448,000
0
1,200,000
4,936,000
5,478,000
6,691,000
Stock issuance
73,000
1,299,000
1,616,000
2,787,000
Growth rate
ED ON CASH
FLOW TO EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Cash flow to
equity holders
2,448,000
1,354,000
2,523,000
3,637,000
3,862,000
3,904,000
9.78% <-- =(E16/E11)^(1/5)-1
1
2
3
4
5
6
7
8
9
COMPUTING THE COST OF EQUITY rE FOR CASCADE USING THE

Market price/earnings multiple, December 2005
18
50.00%
6.00%
8.94% <-- =B3*(1+B4)/B2+B4
Cascade cost of equity calculations

Cascade beta
Cascade tax rate, TC
1.65 <-- From Yahoo

32.42% <-- Computed from Cascade financials

4.93%
11 Cascade cost of equity, rE,Cascade
12
Classic CAPM
11.55% <-- =B10+B8*(B5-B10)
13
Tax-adjusted CAPM
12.59% <-- =B10*(1-B9)+B8*(B5-B10*(1-B9))
14
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
COMPUTING THE COST OF DEBT rD FOR CASCADE

Marketable securities
Notes payable to banks

Long-term debt, net of current portion
Total debt
Interest expense
Interest income
Interest cost
Interest income
Debt net of cash
Debt net of cash and marketable securities
2006/01/31
35,493,000
23,004,000
2005/01/31
30,482,000
1,503,000
4,741,000
12,681,000
12,500,000
29,922,000
2,461,000
12,916,000
25,187,000
40,564,000
2,741,000
979,000
3,570,000
562,000
7.78% <-- =B12/AVERAGE(B10:C10)

2.97% <-- =B13/AVERAGE(B3:C3)
-5,571,000
-28,575,000
10,082,000
8,579,000
T rD FOR 1CASCADE
2
3
4
5
6
7
8
9
10
11
12
13
14
=B12/AVERAGE(B10:C10)
15
=B13/AVERAGE(B3:C3)
16
17
18 <-- =C10-C3
19
1
2
3
4
5
6
7
8
COMPUTING THE WACC FOR CASCADE

The company has negative leverage
Shares outstanding
Equity value, E
Net debt, D
12,536,000
50.69
635,449,840
-28,575,000
Cost of equity, rE
18.11%
9 Cost of debt, rD
7.78%
10 Tax rate, TC
32.42%
11 WACC
18.71%
12
10.46%
15 Cost of debt, rD
7.78%
16
17
18
19
20
Tax rate, TC
WACC
32.42%
10.70%

Cost of equity, rE
11.55%
21 Cost of debt, rD
7.78%
22 Tax rate, TC
32.42%
23 WACC
11.85%
24
12.59%
27 Cost of debt, rD
7.78%
28 Tax rate, TC
29 WACC
30
31 Estimated WACC?
32.42%
12.94%
11.83%
MPUTING THE WACC FOR CASCADE

The company
has negative leverage
1
2 <-- ='Page 79, top'!B2

3 <-- ='Page 78'!B2
4 <-- =B2*B3
5 <-- ='Page 80'!B19
6
8 <-- ='Page 78'!B6
9 <-- ='Page 80'!B15
10 <-- ='Page 79, bottom'!B9

11 <-- =$B$4/($B$4+$B$5)*B8+$B$5/($B$4+$B$5)*B9*(1-B10)
12
y payouts and13
14 <-- ='Page 79, top'!B7
15 <-- ='Page 80'!B15
16 <-- ='Page 79, bottom'!B9
17 <-- =$B$4/($B$4+$B$5)*B14+$B$5/($B$4+$B$5)*B15*(1-B16)
18
and interest 19
20
21
22
23 <-- =$B$4/($B$4+$B$5)*B20+$B$5/($B$4+$B$5)*B21*(1-B22)
24
CAPM and interest
26
27
28
29 <-- =$B$4/($B$4+$B$5)*B26+$B$5/($B$4+$B$5)*B27*(1-B28)
30
31 <-- =AVERAGE(B29,B23,B17)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
FORD MOTOR CO. DIVIDEND HISTORY

1989-1998
Year
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Growth rate, 1989-1997
Dividend
3.00
3.00
1.95
1.60
1.60
1.33
1.23
1.46
1.64
22.81
-7.27% <-- =(B11/B3)^(1/8)-1
25.28% <-- =(B12/B3)^(1/9)-1
FORD'S DIVIDENDS EXCLUDING THE 1998 $21.09 DIVIDEND

Year
Dividend
1989
3.00
1990
3.00
1991
1.95
1992
1.60
1993
1.60
1994
1.33
1995
1.23
1996
1.46
1997
1.64
1998
1.72
6.64% <-- =(B28/B24)^(1/4)-1
Ford's stock price, end-1998
58.69
Gordon cost of equity
9.77% <-- =B28*(1+B29)/B30+B29
Big City
1
COMPUTING THE BETA FOR BIG CITY BAGELS
2
S&P 500 Index
Big City Bagels (BIGC)
3
Date
price
Date
price
4
May-96
669.12
May-96
46.25
5
Jun-96
670.63
0.23%
Jun-96
38.75 -17.69%
10
Nov-96
757.02
7.08%
Nov-96
16.25 -73.09%
11
Dec-96
740.74
-2.17%
Dec-96
13.13 -21.36%
12
Jan-97
786.16
5.95%
Jan-97
17.50
Regressing Big City Bagel on the
S&P28.77%
500
13
Feb-97
790.82
0.59%
Feb-97
22.50
25.13%
Monthly data, May 1996 - March 1999
14
Mar-97
757.12
-4.35%
Mar-97
25.63
13.01%
15
Apr-97
801.34
5.68%
Apr-97
30.00
15.76%
100%
16
May-97
848.28
5.69%
May-97
25.00 -18.23%
17
Jun-97
885.14 85%
4.25%
Jun-97
24.38
-2.53%
18
Jul-97
954.31
7.52%
Jul-97
26.25
7.41%
70%
19
Aug-97
899.47
-5.92%
Aug-97
20.94 -22.61%
20
Sep-97
947.28 55%
5.18%
Sep-97
22.50
7.20%
21
Oct-97
914.62
-3.51%
Oct-97
10.16 -79.54%
22
Nov-97
955.4 40%
4.36%
Nov-97
12.50
20.76%
23
Dec-97
970.43 25%
1.56%
Dec-97
6.41 -66.85%
24
Jan-98
980.28
1.01%
Jan-98
5.94
-7.60%
25
Feb-98
1049.34 10%
6.81%
Feb-98
4.38 -30.54%
26
Mar-98
1101.75 -5%
4.87%
Mar-98
4.38
0.00%
-5%
-4%
-3% 1111.75
-2%
-1% 0.90%
0%
1%
2%
3%
4%
5%
6%
7%
27
Apr-98
Apr-98
2.19
-69.31%
28
May-98
1090.82 -20%
-1.90%
May-98
2.03
-7.41%
y = 0.3241x - 0.1308
29
Jun-98
1133.84
3.87%
Jun-98
1.00 -70.86%
R = 0.0016
-35%
30
Jul-98
1120.67
-1.17%
Jul-98
1.00
0.00%
31
Aug-98
957.28 -50%
-15.76%
Aug-98
0.63 -47.00%
32
Sep-98
1017.01
6.05%
Sep-98
0.38 -51.08%
33
Oct-98
1098.67 -65%
7.72%
Oct-98
0.25 -40.55%
34
Nov-98
1163.63 -80%
5.74%
Nov-98
0.38
40.55%
35
Dec-98
1229.23
5.48%
Dec-98
0.25 -40.55%
36
Jan-99
1279.64
4.02%
Jan-99
0.38
40.55%
37
Feb-99
1238.33
-3.28%
Feb-99
1.06 104.15%
38
Mar-99
1286.37
3.81%
Mar-99
0.97
-9.23%
39 Return sigma (monthly)
4.98%
39.09%
40 Return sigma (annual)
17.27%
135.41%
41
42 Big City's beta
-0.0542 <-- =SLOPE(G5:G38,C5:C38)
43
-0.1127 <-- =INTERCEPT(G5:G38,C5:C38)
44
0.0000 <-- =RSQ(G5:G38,C5:C38)
45
46
-1.5410 <-- =tintercept(G5:G38,C5:C38)
47
-0.0391 <-- =tslope(G5:G38,C5:C38)
ITY BAGELS
1
he S&P
2
3
4
5 <-- =LN(F5/F4)
10
11
12
500
13
14
15
16
17
18
19
20
21
22
23
24
25
26
7%
8%
27
28
S&P
29
30
31
32
33
34
35
36
37
38
39 <-- =STDEV(G5:G38)
40 <-- =SQRT(12)*G39
41
42
43
44
45
46
47
COMPUTING THE COST OF EQUITY rE FOR

BIG CITY BAGELS
March
1
2 Big City's beta
3
4 Risk-free rate, rf
6
7
8
9
10
11
12
13
14
1999
-0.0542
4.29%
9.08%
Cost of equity, rE
4.03% <-- =B4+B2*(B5-B4)
Supporting numbers
P/E ratio of S&P 500, March 1999
Payout ratio, b
Expected growth, g
50
50%
8%
9.08%
COMPUTING THE COST OF EQUITY rE FOR

BIG CITY BAGELS
Assumes that forward-looking
1
2 Big City's beta
1.3000
3
4 Risk-free rate, rf
4.29%
9.08%
6
7
8
9
10
11
12
13
14
Cost of equity, rE
Supporting numbers
P/E ratio of S&P 500, March 1999
Payout ratio, b
Expected growth, g
beta = 1.3
10.52% <-- =B4+B2*(B5-B4)
50
50%
8%
9.08%
PRICE DATA FOR DOW-JONES INDUSTRIAL 30 COMPONENT

Date
4/2/2002
5/1/2002
6/3/2002
7/1/2002
8/1/2002
9/3/2002
10/1/2002
11/1/2002
12/2/2002
1/2/2003
2/3/2003
3/3/2003
4/1/2003
5/1/2003
2/1/2007
3/1/2007
4/2/2007
Alcoa
AA
30.54
31.54
29.89
24.53
22.75
17.50
20.00
23.32
20.79
18.04
18.86
17.82
21.23
22.79
33.41
33.90
34.59
American
International
AIG
67.13
65.04
66.31
62.12
61.03
53.20
60.84
63.37
56.31
52.68
47.98
48.18
56.46
56.39
67.11
67.22
67.23
American
Express
AXP
34.27
35.52
30.35
29.53
30.20
26.11
30.53
32.68
29.74
29.89
28.25
27.96
31.93
35.14
56.72
56.25
55.96
Boeing
BA
40.92
39.27
41.44
38.23
34.29
31.57
27.52
31.67
30.68
29.38
25.77
23.43
25.51
28.85
87.26
88.91
90.50
Citigroup
C
34.28
34.33
30.81
26.66
28.07
25.41
31.83
33.49
30.31
29.75
28.88
29.84
34.00
35.71
50.37
51.34
51.57
Caterpillar
CAT
24.70
23.64
22.14
20.38
19.90
16.97
18.79
22.96
21.03
20.39
21.79
22.81
24.54
24.33
64.43
67.03
67.63
RIAL 30 COMPONENTS, APRIL 2002 - APRIL 2007

DuPont
DD
37.72
39.29
37.92
35.80
34.72
31.07
35.53
38.75
36.82
32.89
32.16
34.08
37.30
37.25
50.73
49.43
49.32
Disney
DIS
22.04
21.79
17.97
16.86
14.91
14.40
15.88
18.85
15.70
16.85
16.42
16.39
17.97
18.92
34.25
34.43
34.91
General
Electric
GE
27.56
27.20
25.53
28.30
26.50
21.82
22.35
24.00
21.72
20.64
21.62
22.92
26.47
25.80
34.91
35.36
35.02
General
Motors
GM
50.54
49.33
42.43
36.95
38.43
31.24
26.70
32.35
30.03
29.60
27.90
27.78
29.78
29.60
31.90
30.64
31.90
Home Depot
HD
43.85
39.42
34.77
29.24
31.18
24.75
27.38
25.03
22.83
19.86
22.29
23.21
26.81
30.96
39.36
36.74
38.02
Honeywell
HON
32.59
35.00
31.46
28.89
26.90
19.45
21.50
23.55
21.73
22.13
20.89
19.50
21.54
24.10
46.40
46.06
47.26
Hewlett
Packard
HPQ
15.92
17.78
14.30
13.24
12.56
10.98
14.87
18.33
16.41
16.46
14.98
14.77
15.49
18.53
39.27
40.14
41.80
International
Business
Machines
IBM
79.91
76.91
68.83
67.30
72.22
55.87
75.63
83.43
74.39
75.06
74.97
75.43
81.65
84.82
92.94
94.26
96.52
Intel
INTC
27.16
26.24
17.36
17.85
15.86
13.21
16.46
19.88
14.83
14.91
16.45
15.52
17.54
19.87
19.86
19.13
19.58
Johnson &
Johnson
JNJ
57.99
55.90
47.62
47.93
49.67
49.46
53.73
52.32
49.29
49.19
48.33
53.32
51.93
50.30
62.93
60.26
61.55
JP Morgan
Chase
JPM
28.87
29.57
27.90
20.75
21.95
15.79
17.56
21.30
20.31
20.03
19.46
20.35
25.55
28.60
49.04
48.04
48.77
Coca Cola
KO
49.46
49.51
50.09
44.67
45.61
43.06
41.73
41.16
39.54
36.49
36.27
36.72
36.65
41.34
46.35
48.00
49.52
McDonalds
MCD
25.90
27.31
25.95
22.57
21.67
16.11
16.52
17.11
14.87
13.17
12.59
13.37
15.81
17.32
43.69
45.05
45.78
3M Company
MMM
56.71
56.83
55.72
57.01
56.88
50.06
57.79
59.40
56.40
56.98
57.65
59.79
57.96
58.47
74.08
76.43
76.75
Altria Group
MO
31.75
33.40
25.80
27.20
29.54
23.23
24.40
22.58
24.65
23.03
23.50
18.55
19.04
25.57
62.62
65.90
70.75
Merck
MRK
42.71
44.88
40.06
39.24
39.97
36.43
43.23
47.35
45.40
44.42
42.30
44.24
46.99
44.89
43.77
44.17
45.54
Microsoft
MSFT
22.49
21.91
23.54
20.65
21.12
18.82
23.01
24.82
22.25
20.42
20.46
20.90
22.08
21.25
28.17
27.87
28.55
Pfizer
PFE
31.96
30.53
30.88
28.54
29.30
25.71
28.14
28.04
27.19
27.13
26.65
27.85
27.48
27.85
24.96
25.26
25.84
Procter
Gamble
PG
40.80
40.48
40.68
40.75
40.59
40.92
40.68
38.88
39.53
39.55
37.83
41.16
41.71
42.63
63.49
63.16
63.00
AT&T
T
24.27
26.79
23.83
21.80
19.49
15.84
20.48
22.75
21.64
19.68
16.75
16.16
19.10
20.82
36.47
39.07
39.27
United
Technology
UTX
32.41
31.92
31.47
32.21
27.63
26.29
28.70
29.18
28.94
29.70
27.47
27.10
28.99
32.14
65.64
65.00
64.93
Verizon
VZ
31.06
33.30
31.09
25.81
24.25
21.46
29.89
33.15
30.67
30.57
27.62
28.23
30.18
30.56
37.00
37.52
38.00
Walmart
WMT
53.03
51.36
52.29
46.75
50.83
46.87
50.97
51.31
48.15
45.57
45.81
49.68
53.78
50.24
48.08
46.95
48.27
Exxon Mobile
XOM
35.84
35.84
36.72
32.99
32.02
28.81
30.40
31.64
31.77
31.05
31.14
31.99
32.22
33.56
71.68
75.45
77.22
DJI
9946.22
9925.25
9243.26
8736.59
8663.50
7591.93
8397.03
8896.09
8341.63
8053.81
7891.08
7992.13
8480.09
8850.26
12268.63
12354.35
12560.83
S&P500
1076.92
1067.14
989.82
911.62
916.07
815.28
885.76
936.31
879.82
855.70
841.15
848.18
916.92
963.59
1406.82
1420.86
1443.76
RETURN DATA, ALPHA, BETA, R-SQUARED

For Dow-Jones 30 Industrials, April 2002 - April 2007
1
2
3
4
5
=INTERCEPT(B16:B75,$AH$16:$AH$75)
=SLOPE(B16:B75,$AH$16:$AH$75)
=RSQ(B16:B75,$AH$16:$AH$75)
Alcoa
AA
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Alpha
Beta
R-squared
T-Alpha
T-Beta
-0.0074
1.9446
0.5646
-0.9545
8.6724
American
International
AIG
-0.0058
1.1873
0.3906
-0.8548
6.0965
American
Express
AXP
0.0020
1.2615
0.6987
0.5325
11.5982
Boeing
BA
0.0097
0.7304
0.1442
1.1917
3.1260
Citigroup Caterpillar
C
CAT
0.0009
1.2086
0.5050
0.1653
7.6922
DuPont
DD
0.0100
1.3915
0.4328
1.3765
6.6532
-0.0007
1.0488
0.4114
-0.1147
6.3675
-4.39%
-6.56%
-8.28%
-2.38%
-15.93%
10.19%
20.04%
-8.78%
-3.09%
6.64%
4.57%
7.31%
-0.86%
6.52%
19.84%
6.27%
-4.27%
6.73%
3.72%
8.78%
-5.65%
-3.10%
4.31%
-1.26%
-3.10%
5.30%
-7.27%
-1.09%
10.11%
0.62%
4.08%
-3.55%
-5.75%
-3.06%
-11.11%
13.41%
8.68%
-5.11%
-11.29%
-2.24%
5.80%
9.03%
-0.13%
-1.19%
5.37%
2.62%
-11.19%
0.98%
3.47%
10.15%
-4.44%
3.46%
-6.58%
1.71%
1.43%
2.77%
-3.54%
-0.61%
1.28%
0.18%
=tintercept(B16:B75,$AH$16:$AH$75)
=tslope(B16:B75,$AH$16:$AH$75)
Date
5/1/2002
6/3/2002
7/1/2002
8/1/2002
9/3/2002
10/1/2002
11/1/2002
12/2/2002
1/2/2003
2/3/2003
3/3/2003
4/1/2003
5/1/2003
6/2/2003
7/1/2003
8/1/2003
9/2/2003
10/1/2003
11/3/2003
12/1/2003
1/2/2004
2/2/2004
3/1/2004
4/1/2004
5/3/2004
6/1/2004
7/1/2004
8/2/2004
9/1/2004
10/1/2004
3.22%
-5.37%
-19.76%
-7.53%
-26.24%
13.35%
15.36%
-11.48%
-14.19%
4.45%
-5.67%
17.51%
7.09%
3.53%
8.52%
3.37%
-8.76%
18.77%
4.33%
14.70%
-10.61%
9.65%
-7.73%
-12.05%
2.26%
5.40%
-3.09%
1.57%
3.68%
-3.32%
-3.16%
1.93%
-6.53%
-1.77%
-13.73%
13.42%
4.07%
-11.81%
-6.66%
-9.35%
0.42%
15.86%
-0.12%
-4.68%
15.13%
-7.48%
-3.08%
5.27%
-4.85%
13.54%
4.68%
6.35%
-3.56%
0.41%
2.29%
-2.70%
-0.88%
0.82%
-4.56%
-11.32%
3.58%
-15.73%
-2.74%
2.24%
-14.55%
15.64%
6.81%
-9.43%
0.50%
-5.64%
-1.03%
13.28%
9.58%
0.34%
5.73%
1.99%
0.00%
4.29%
-2.62%
5.57%
7.21%
3.02%
-2.79%
-5.76%
3.52%
1.52%
-2.22%
-0.47%
2.84%
3.32%
-4.12%
5.38%
-8.06%
-10.88%
-8.26%
-13.73%
14.05%
-3.18%
-4.33%
-13.11%
-9.52%
8.51%
12.30%
11.23%
-3.56%
12.65%
-8.53%
11.43%
0.19%
9.32%
-0.93%
4.20%
-5.44%
3.86%
7.50%
10.94%
-0.68%
3.26%
-1.16%
-3.38%
0.15%
-10.82%
-14.47%
5.15%
-9.96%
22.53%
5.08%
-9.98%
-1.86%
-2.97%
3.27%
13.05%
4.91%
4.25%
5.36%
-3.28%
4.85%
4.82%
-0.79%
3.17%
2.71%
1.58%
2.82%
-6.41%
-3.51%
0.14%
-4.40%
5.50%
-5.42%
1.46%
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
A
11/1/2004
12/1/2004
1/3/2005
2/1/2005
3/1/2005
4/1/2005
5/2/2005
6/1/2005
7/1/2005
8/1/2005
9/1/2005
10/3/2005
11/1/2005
12/1/2005
1/3/2006
2/1/2006
3/1/2006
4/3/2006
5/1/2006
6/1/2006
7/3/2006
8/1/2006
9/1/2006
10/2/2006
11/1/2006
12/1/2006
1/3/2007
2/1/2007
3/1/2007
4/2/2007
B
4.94%
-7.87%
-6.24%
8.97%
-5.55%
-4.60%
-6.31%
-3.67%
7.10%
-4.08%
-9.25%
-0.55%
12.69%
7.61%
6.32%
-6.71%
4.16%
10.01%
-5.85%
2.00%
-7.74%
-4.16%
-1.93%
3.06%
8.04%
-3.62%
7.89%
3.38%
1.46%
2.01%
C
4.24%
3.71%
0.94%
0.77%
-18.50%
-8.60%
8.86%
4.70%
3.55%
-1.43%
4.56%
4.49%
3.54%
1.60%
-4.13%
1.37%
-0.18%
-1.28%
-6.82%
-2.93%
2.71%
5.32%
3.75%
1.37%
4.82%
1.88%
-4.58%
-1.73%
0.16%
0.01%
D
4.84%
1.19%
-5.29%
1.48%
-5.04%
2.58%
2.14%
-0.93%
3.27%
0.44%
3.90%
-0.77%
3.25%
0.08%
2.15%
2.69%
-2.49%
2.59%
1.01%
-2.10%
-1.94%
0.93%
6.52%
3.31%
1.57%
3.27%
-3.88%
-2.34%
-0.83%
-0.52%
E
7.49%
-3.42%
-2.29%
8.76%
6.15%
1.80%
7.51%
3.24%
0.02%
1.90%
1.38%
-5.00%
5.74%
2.96%
-2.80%
6.64%
6.97%
6.84%
0.10%
-1.63%
-5.64%
-2.92%
5.14%
1.27%
10.66%
0.35%
0.81%
-2.22%
1.87%
1.77%
F
0.86%
7.39%
1.80%
-1.87%
-6.01%
5.35%
0.32%
-1.89%
-5.09%
0.61%
3.93%
0.58%
6.84%
-0.04%
-4.09%
0.61%
1.82%
6.63%
-1.31%
-2.15%
0.13%
3.15%
0.64%
0.98%
-0.16%
11.62%
-1.02%
-8.05%
1.91%
0.45%
G
12.83%
6.29%
-8.57%
6.46%
-3.86%
-3.32%
6.66%
1.26%
12.81%
2.89%
5.71%
-10.64%
9.43%
-0.02%
16.54%
7.36%
-1.75%
5.64%
-3.75%
2.08%
-4.54%
-6.59%
-0.82%
-7.62%
2.15%
-1.14%
4.88%
0.56%
3.96%
0.89%
H
6.33%
7.92%
-3.10%
12.10%
-3.95%
-8.40%
-0.50%
-7.83%
-0.77%
-6.68%
-1.02%
6.22%
3.40%
-0.59%
-8.20%
3.66%
4.76%
4.38%
-2.80%
-2.22%
-4.77%
1.72%
6.94%
6.67%
3.23%
3.73%
1.72%
3.06%
-2.60%
-0.22%
General
Electric
GE
General
Motors
GM
Home
Depot
HD
Noneywell
HON
Hewlett
Packard
HPQ
ETA, R-SQUARED
April 2002 1- April 2007
2
3
4
5
0.0017
1.2131
0.3699
0.2410
5.8350
0.0003
0.7474
0.2533
0.0583
4.4352
-0.0140
1.2860
0.1869
-1.1417
3.6511
-0.0098
1.5274
0.4791
-1.3563
7.3042
-0.0018
1.6276
0.6100
-0.2964
9.5241
0.0071
1.8433
0.5260
0.8885
8.0223
International
Business
Machines
IBM
-0.0047
1.6008
0.5540
-0.7142
8.4877
-1.14%
-19.27%
-6.38%
-12.29%
-3.48%
9.78%
17.15%
-18.29%
7.07%
-2.59%
-0.18%
9.20%
5.15%
0.47%
10.43%
-6.66%
-1.63%
11.56%
1.95%
1.96%
2.87%
9.99%
-5.95%
-8.19%
1.90%
8.24%
-9.88%
-2.80%
0.46%
11.17%
-1.31%
-6.34%
10.30%
-6.57%
-19.43%
2.40%
7.12%
-9.98%
-5.10%
4.64%
5.84%
14.40%
-2.56%
0.58%
-0.85%
3.89%
1.45%
-2.73%
-1.18%
8.41%
8.21%
-2.76%
-6.33%
-1.90%
3.84%
4.63%
2.59%
-1.40%
2.98%
1.58%
-2.42%
-15.07%
-13.83%
3.93%
-20.71%
-15.70%
19.20%
-7.44%
-1.44%
-5.91%
-0.43%
6.95%
-0.61%
1.87%
3.90%
10.67%
-0.40%
4.17%
1.43%
22.17%
-7.21%
-2.18%
-1.81%
0.34%
-3.24%
2.60%
-7.70%
-3.14%
2.80%
-9.71%
-10.65%
-12.55%
-17.32%
6.42%
-23.10%
10.10%
-8.97%
-9.20%
-13.94%
11.54%
4.04%
14.42%
14.39%
2.11%
-5.96%
3.01%
-0.75%
15.19%
-0.85%
-3.32%
-0.06%
2.35%
3.03%
-5.97%
2.05%
-1.78%
-4.31%
8.33%
6.98%
4.67%
7.13%
-10.66%
-8.52%
-7.14%
-32.43%
10.02%
9.11%
-8.04%
1.82%
-5.77%
-6.89%
9.95%
11.23%
2.42%
5.21%
3.14%
-9.57%
15.01%
-2.43%
11.88%
7.72%
-2.47%
-3.50%
2.12%
-2.00%
8.34%
2.66%
-3.91%
-0.32%
-6.26%
11.05%
-21.78%
-7.70%
-5.27%
-13.44%
30.33%
20.92%
-11.06%
0.30%
-9.42%
-1.41%
4.76%
17.92%
9.17%
-0.59%
-6.02%
-2.50%
14.16%
-2.56%
5.83%
3.52%
-4.66%
0.96%
-14.80%
7.50%
-0.29%
-4.61%
-11.86%
5.12%
-0.49%
-3.83%
-11.10%
-2.25%
7.06%
-25.67%
30.28%
9.82%
-11.47%
0.90%
-0.12%
0.61%
7.92%
3.81%
-6.49%
-1.53%
1.13%
7.42%
1.29%
1.37%
2.34%
6.82%
-2.63%
-4.94%
-4.08%
0.68%
-0.49%
-1.23%
-2.56%
1.23%
4.57%
Disney
DIS
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Intel
INTC
-0.0159
2.1304
0.4473
-1.4703
6.8513
-3.45%
-41.31%
2.78%
-11.82%
-18.28%
22.00%
18.88%
-29.31%
0.54%
9.83%
-5.82%
12.24%
12.47%
-0.05%
17.93%
13.92%
-3.81%
17.98%
1.86%
-4.56%
-4.88%
-4.27%
-7.12%
-5.57%
10.55%
-3.38%
-12.38%
-13.40%
-5.95%
10.40%
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
I
6.40%
4.23%
2.93%
-2.42%
2.77%
-8.44%
3.86%
-8.61%
1.81%
-1.77%
-4.30%
1.01%
2.28%
-2.90%
5.45%
10.08%
-0.36%
0.25%
8.70%
-1.67%
-1.05%
-0.14%
4.17%
1.78%
4.91%
4.54%
2.59%
-2.65%
0.52%
1.38%
J
3.58%
3.78%
-1.03%
-1.97%
2.41%
0.38%
0.76%
-4.51%
-0.43%
-2.63%
0.84%
0.71%
5.20%
-1.18%
-6.80%
1.10%
5.67%
-0.56%
-0.96%
-3.12%
-0.81%
4.11%
4.29%
-0.55%
0.49%
6.06%
-3.16%
-2.43%
1.28%
-0.97%
K
1.39%
3.76%
-8.48%
-1.86%
-19.31%
-9.67%
18.35%
7.51%
7.99%
-5.98%
-11.07%
-11.09%
-20.57%
-11.99%
21.41%
-15.76%
4.62%
7.30%
17.23%
10.10%
7.88%
-9.13%
13.07%
4.88%
-17.09%
4.97%
6.69%
-2.23%
-4.03%
4.03%
L
1.82%
2.33%
-3.52%
-3.05%
-4.28%
-7.82%
10.67%
-0.90%
11.20%
-7.36%
-5.58%
7.34%
2.03%
-3.16%
0.18%
3.86%
0.70%
-5.76%
-4.63%
-5.90%
-3.09%
-1.21%
6.04%
2.89%
2.30%
5.61%
1.42%
-2.86%
-6.89%
3.42%
M
5.31%
0.21%
1.59%
5.92%
-2.03%
-3.95%
1.85%
1.11%
6.98%
-2.03%
-2.07%
-9.20%
7.17%
1.92%
3.10%
6.92%
4.35%
-0.62%
-2.63%
-2.17%
-4.04%
0.65%
5.46%
2.95%
2.56%
5.13%
0.97%
2.07%
-0.74%
2.57%
N
6.92%
5.16%
-6.82%
5.99%
5.74%
-6.93%
9.50%
4.69%
4.61%
12.01%
5.31%
-4.04%
5.66%
-3.30%
8.53%
5.09%
0.52%
-1.33%
-0.28%
-1.92%
0.73%
13.60%
0.58%
5.43%
1.85%
4.50%
4.94%
-9.51%
2.19%
4.05%
O
5.08%
4.50%
-5.38%
-0.72%
-1.30%
-17.93%
-0.82%
-1.80%
11.75%
-3.22%
-0.49%
2.05%
8.47%
-7.83%
-1.11%
-1.06%
2.74%
-0.16%
-2.65%
-3.93%
0.76%
4.90%
1.19%
11.93%
-0.12%
5.54%
2.03%
-6.16%
1.41%
2.37%
P
0.70%
4.45%
-4.13%
6.98%
-3.20%
1.24%
14.00%
-3.55%
4.20%
-5.07%
-4.25%
-4.79%
13.05%
-6.64%
-16.06%
-2.69%
-5.66%
2.59%
-9.77%
5.27%
-5.38%
8.90%
4.98%
3.66%
0.80%
-5.55%
3.46%
-4.86%
-3.74%
2.33%
Coca
Cola
KO
McDonal
ds
MCD
3M
Company
MMM
Altria
Group
MO
Merck
MRK
Microsoft
MSFT
Pfizer
PFE
1
2
3
4
5
Johnson
JP
&
Morgan
Johnson Chase
6
JNJ
JPM
-0.0007
-0.0002
7
0.3475
1.8394
8
0.0890
0.5957
9
-0.1391
-0.0360
10
2.3806
9.2439
11
12
13
14
15
16
-3.67%
2.40%
17
-16.03%
-5.81%
18
0.65% -29.61%
19
3.57%
5.62%
20
-0.42% -32.94%
21
8.28%
10.62%
22
-2.66%
19.31%
23
-5.97%
-4.76%
24
-0.20%
-1.39%
25
-1.76%
-2.89%
26
9.83%
4.47%
27
-2.64%
22.76%
28
-3.19%
11.28%
29
-5.01%
3.94%
30
0.19%
3.53%
31
-3.89%
-2.40%
32
-0.13%
0.30%
33
1.64%
5.45%
34
-1.59%
-1.39%
35
4.67%
3.69%
36
3.36%
6.64%
37
1.35%
5.31%
38
-6.11%
2.26%
39
6.33% -10.16%
40
3.58%
-2.02%
41
-0.02%
5.10%
42
-0.78%
-2.90%
43
5.50%
5.85%
44
-3.10%
0.39%
45
3.59%
-2.06%
-0.0028
0.5737
0.1974
-0.5281
3.7774
0.0019
1.5627
0.5299
0.2771
8.0849
0.0016
0.7058
0.1985
0.2469
3.7902
0.0084
1.0089
0.1569
0.7906
3.2850
-0.0028
0.8005
0.1211
-0.2893
2.8276
-0.0007
0.9650
0.3067
-0.1117
5.0657
-0.0067
0.6561
0.1657
-1.0060
3.3935
0.10%
1.16%
-11.45%
2.08%
-5.75%
-3.14%
-1.38%
-4.02%
-8.03%
-0.60%
1.23%
-0.19%
12.04%
2.30%
-3.15%
-3.27%
-0.81%
7.70%
0.70%
8.74%
-3.02%
1.45%
1.19%
0.54%
1.53%
-1.23%
-14.05%
1.92%
-10.44%
1.51%
5.30%
-5.11%
-13.96%
-4.07%
-29.65%
2.51%
3.51%
-14.03%
-12.14%
-4.50%
6.01%
16.76%
9.12%
16.37%
4.22%
-2.62%
4.90%
6.02%
4.03%
-3.17%
3.58%
9.50%
0.94%
-4.81%
-3.10%
-1.50%
5.61%
-1.80%
3.68%
3.95%
0.21%
-1.97%
2.29%
-0.23%
-12.77%
14.36%
2.75%
-5.18%
1.02%
1.17%
3.64%
-3.11%
0.88%
1.96%
8.33%
2.06%
-3.09%
13.28%
0.64%
7.31%
-7.24%
-0.91%
4.81%
5.48%
-1.81%
6.25%
-8.88%
0.45%
-2.95%
-3.04%
5.07%
-25.82%
5.28%
8.25%
-24.03%
4.91%
-7.75%
8.77%
-6.80%
2.02%
-23.65%
2.61%
29.49%
11.02%
-12.72%
2.98%
7.72%
5.97%
11.17%
5.82%
2.14%
3.47%
-4.36%
1.67%
-14.37%
5.67%
-5.00%
2.78%
-2.49%
2.95%
4.96%
-11.36%
-2.07%
1.84%
-9.27%
17.11%
9.10%
-4.21%
-2.18%
-4.89%
4.48%
6.03%
-4.57%
9.21%
-9.12%
-3.90%
1.33%
-13.45%
-8.62%
13.81%
2.98%
1.01%
-7.68%
6.16%
0.65%
1.19%
-4.64%
-0.85%
-30.07%
-5.29%
-2.61%
7.18%
-13.10%
2.25%
-11.53%
20.10%
7.57%
-10.93%
-8.58%
0.20%
2.13%
5.49%
-3.83%
4.10%
2.94%
0.44%
4.69%
-5.61%
-1.64%
6.25%
1.05%
-4.17%
-6.23%
4.74%
0.35%
8.54%
-0.28%
-3.96%
1.30%
1.12%
-4.58%
1.14%
-7.88%
2.63%
-13.07%
9.03%
-0.36%
-3.08%
-0.22%
-1.79%
4.40%
-1.34%
1.34%
9.61%
-2.34%
-10.44%
1.54%
3.94%
6.52%
5.09%
3.62%
0.51%
-4.48%
2.02%
-0.71%
-3.05%
-7.00%
2.73%
-6.57%
-5.52%
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Q
3.74%
5.01%
2.00%
1.82%
2.35%
2.16%
-1.75%
-3.18%
-1.61%
-0.39%
-0.16%
-1.05%
-0.88%
-2.70%
-4.36%
0.77%
2.68%
-1.04%
3.33%
-0.49%
4.29%
3.89%
0.44%
3.72%
-1.66%
0.17%
1.17%
-5.38%
-4.34%
2.12%
R
-2.48%
3.55%
-3.52%
-2.13%
-5.46%
3.52%
0.75%
-1.23%
0.45%
-3.62%
0.12%
8.63%
4.36%
3.68%
1.00%
3.44%
1.23%
9.39%
-6.23%
-1.51%
9.09%
0.09%
2.80%
1.73%
-2.47%
4.27%
6.01%
-3.07%
-2.06%
1.51%
S
-2.75%
5.78%
-0.38%
3.13%
-2.03%
4.17%
2.69%
-6.02%
4.71%
0.53%
-1.22%
-0.95%
0.44%
-5.72%
2.61%
1.42%
0.49%
0.22%
4.81%
-1.60%
3.38%
0.69%
0.41%
4.46%
0.91%
2.99%
-0.78%
-2.54%
3.50%
3.12%
T
7.12%
4.23%
1.01%
2.11%
-6.02%
-6.05%
5.41%
-10.91%
11.65%
4.01%
3.14%
-5.78%
8.89%
-0.36%
3.76%
-0.29%
-1.60%
0.62%
-4.14%
1.29%
5.20%
1.41%
8.61%
6.90%
2.53%
5.47%
0.05%
-1.50%
3.07%
1.61%
U
3.01%
3.06%
2.76%
0.00%
2.06%
-11.38%
0.78%
-5.84%
3.67%
-4.68%
3.05%
3.51%
3.77%
-1.26%
-6.33%
1.77%
2.81%
12.12%
-1.57%
-3.51%
-13.75%
2.49%
3.73%
5.76%
3.84%
-4.43%
-4.77%
0.34%
3.12%
0.42%
V
17.11%
7.29%
4.37%
2.81%
0.71%
-0.60%
3.25%
-2.69%
3.49%
5.42%
5.28%
1.81%
-3.05%
3.66%
-3.23%
-0.62%
-0.37%
3.20%
-1.11%
2.62%
8.53%
4.35%
-7.69%
6.06%
3.47%
2.91%
1.80%
-3.62%
5.11%
7.10%
W
-11.10%
15.10%
-13.59%
12.21%
3.29%
4.61%
-4.37%
-4.01%
0.84%
-8.20%
-3.68%
3.65%
5.36%
7.89%
8.11%
1.03%
2.17%
-2.33%
-2.20%
9.02%
10.02%
1.62%
3.28%
8.06%
-2.04%
-1.22%
2.60%
-1.36%
0.91%
3.05%
X
6.63%
-0.35%
-1.67%
-4.04%
-4.00%
4.57%
2.29%
-3.80%
3.04%
6.99%
-6.23%
-0.12%
7.72%
-5.67%
7.35%
-4.32%
1.28%
-11.95%
-6.02%
2.86%
3.20%
6.94%
6.23%
4.85%
2.60%
1.69%
3.27%
-8.76%
-1.07%
2.41%
Y
-3.56%
-3.24%
-10.68%
9.18%
-0.08%
3.37%
3.34%
-1.15%
-3.98%
-3.23%
-2.01%
-13.84%
-1.67%
9.53%
9.64%
2.90%
-4.96%
1.65%
-5.87%
-0.83%
10.21%
6.78%
2.88%
-6.23%
3.98%
-5.95%
1.32%
-3.93%
1.19%
2.27%
AA
AB
AC
AD
AE
Procter
Gamble
PG
AT&T
T
United
Technology
UTX
Verizon
VZ
Walmart
WMT
Exxon
Mobile
XOM
AF
AG
AH
DJI
S&P500
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
0.0062
0.2041
0.0422
1.4090
1.5981
0.0006
1.5124
0.4957
0.0908
7.5511
0.0083
0.6630
0.2421
1.5610
4.3044
-0.0033
1.3658
0.4236
-0.4563
6.5289
-0.0043
0.5542
0.1446
-0.6962
3.1315
0.0091
0.7557
0.2416
1.4920
4.2979
-0.0010
0.9990
0.9332
-0.8142
28.4733
0.0000
1.0000
1.0000
-0.79%
0.49%
0.17%
-0.39%
0.81%
-0.59%
-4.53%
1.66%
0.05%
-4.45%
8.44%
1.33%
2.18%
-2.93%
-0.95%
-0.66%
6.14%
6.20%
-2.10%
3.70%
1.67%
1.40%
2.29%
1.33%
1.90%
0.99%
-3.84%
7.06%
-3.36%
-5.12%
9.88%
-11.71%
-8.90%
-11.20%
-20.74%
25.69%
10.51%
-5.00%
-9.49%
-16.12%
-3.59%
16.71%
8.62%
0.38%
-7.50%
-3.94%
-0.92%
9.15%
-2.96%
11.30%
-1.05%
-6.01%
2.17%
2.73%
-4.95%
2.32%
5.70%
1.74%
0.62%
-1.55%
-1.52%
-1.42%
2.32%
-15.34%
-4.97%
8.77%
1.66%
-0.83%
2.59%
-7.81%
-1.36%
6.74%
10.32%
3.70%
6.02%
6.82%
-3.79%
9.18%
1.59%
10.05%
0.82%
-3.30%
-6.52%
-0.02%
-1.52%
7.82%
2.17%
0.82%
-0.56%
-0.60%
6.96%
-6.87%
-18.61%
-6.23%
-12.22%
33.13%
10.35%
-7.78%
-0.33%
-10.15%
2.18%
6.68%
1.25%
4.13%
-11.01%
0.91%
-8.48%
4.65%
-2.30%
6.61%
6.00%
3.93%
-4.81%
4.28%
-8.74%
4.53%
7.37%
1.84%
0.33%
0.21%
-3.20%
1.79%
-11.20%
8.37%
-8.11%
8.39%
0.66%
-6.36%
-5.51%
0.53%
8.11%
7.93%
-6.81%
2.15%
4.10%
5.65%
-5.76%
5.55%
-5.78%
-4.59%
1.50%
10.08%
0.44%
-4.62%
-2.01%
-5.98%
0.98%
-0.41%
1.00%
1.35%
0.00%
2.43%
-10.71%
-2.98%
-10.56%
5.37%
4.00%
0.41%
-2.29%
0.29%
2.69%
0.72%
4.07%
-1.35%
-0.94%
6.46%
-2.96%
-0.03%
-0.35%
12.43%
-0.50%
3.93%
-1.37%
2.27%
2.27%
2.65%
4.17%
0.16%
4.74%
1.81%
-0.21%
-7.12%
-5.64%
-0.84%
-13.20%
10.08%
5.77%
-6.44%
-3.51%
-2.04%
1.27%
5.93%
4.27%
1.52%
2.73%
1.95%
-1.51%
5.52%
-0.19%
6.64%
0.33%
0.91%
-2.16%
-1.28%
-0.36%
2.40%
-2.88%
0.34%
-0.92%
-0.53%
-0.91%
-7.52%
-8.23%
0.49%
-11.66%
8.29%
5.55%
-6.22%
-2.78%
-1.71%
0.83%
7.79%
4.96%
1.13%
1.61%
1.77%
-1.20%
5.35%
0.71%
4.95%
1.71%
1.21%
-1.65%
-1.69%
1.20%
1.78%
-3.49%
0.23%
0.93%
1.39%
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Z
4.40%
2.95%
-2.97%
-0.25%
-0.18%
2.66%
1.84%
-4.46%
5.84%
-0.28%
6.93%
-5.51%
2.12%
1.19%
2.80%
1.17%
-3.91%
1.55%
-7.05%
2.46%
1.63%
9.67%
0.13%
2.75%
-0.96%
2.33%
1.41%
-2.15%
-0.52%
-0.25%
AA
-0.36%
2.35%
-6.84%
1.26%
-1.54%
1.82%
-1.77%
1.54%
4.26%
-1.52%
-0.45%
0.86%
4.35%
-1.69%
7.12%
6.12%
-2.01%
-1.85%
-0.60%
6.81%
8.45%
3.74%
4.47%
6.11%
-1.02%
5.30%
6.17%
-2.22%
6.89%
0.51%
AB
5.35%
5.75%
-2.60%
-0.37%
1.76%
0.06%
5.19%
-3.81%
-1.27%
-0.96%
3.60%
-1.07%
5.27%
3.78%
4.30%
0.61%
-0.91%
8.02%
-0.06%
1.43%
-1.95%
1.26%
1.02%
3.67%
-1.42%
-3.18%
8.43%
-3.16%
-0.98%
-0.11%
AC
5.30%
-1.77%
-11.98%
1.06%
-1.29%
1.96%
-1.18%
-2.35%
0.23%
-4.54%
-0.07%
-2.41%
1.47%
-5.98%
6.26%
6.25%
1.07%
-1.89%
-5.68%
7.05%
2.21%
3.95%
5.40%
0.72%
-2.03%
6.37%
4.48%
-2.96%
1.40%
1.27%
AD
-3.52%
1.69%
-0.80%
-1.51%
-2.65%
-6.12%
0.50%
2.04%
2.36%
-9.00%
-2.56%
7.66%
2.60%
-3.38%
-1.49%
-1.63%
4.42%
-4.78%
7.66%
-0.59%
-7.91%
0.86%
9.79%
-0.08%
-6.66%
0.55%
3.21%
1.30%
-2.38%
2.77%
AE
4.59%
0.02%
0.67%
20.92%
-6.04%
-4.40%
-0.95%
2.24%
2.19%
2.43%
5.90%
-12.38%
3.81%
-3.26%
11.08%
-5.00%
2.47%
3.58%
-3.00%
0.73%
9.90%
0.36%
-0.84%
6.23%
7.70%
-0.22%
-3.36%
-2.90%
5.13%
2.32%
AF
AG
3.92%
3.35%
-2.76%
2.60%
-2.47%
-3.01%
2.66%
-1.86%
3.50%
-1.51%
0.83%
-1.22%
3.44%
-0.82%
1.37%
1.18%
1.05%
2.29%
-1.76%
-0.16%
0.32%
1.73%
2.58%
3.38%
1.16%
1.95%
1.26%
-2.84%
0.70%
1.66%
AH
3.79%
3.19%
-2.56%
1.87%
-1.93%
-2.03%
2.95%
-0.01%
3.53%
-1.13%
0.69%
-1.79%
3.46%
-0.10%
2.51%
0.05%
1.10%
1.21%
-3.14%
0.01%
0.51%
2.11%
2.43%
3.10%
1.63%
1.25%
1.40%
-2.21%
0.99%
1.60%
1
2
3
4
5
6
REGRESSING THE DJ30 COMPONENTS ON THE S&P500

Averages
Average alpha
Average beta
Average r-squared
Average t-statistic, intercept
Average t-statistic, slope
-0.0005
1.1421
0.3508
0.0052
5.7859
<-<-<-<-<--
=AVERAGE('Page 93, middle'!B7:AE7)

REGRESSING PORTFOLIOS OF THE DJ30 COMPONENTS ON THE S&P50
1
2 Alpha
-0.0020
3 Beta
1.1747
4 R-squared
0.8191
5 T-Alpha
-0.7772
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
16.2082
T-Beta
Portfolio weights
AA
AIG
AXP
BA
C
CAT
DD
DIS
GE
GM
HD
HON
HPQ
IBM
INTC
JNJ
JPM
KO
MCD
MMM
MO
MRK
MSFT
PFE
PG
T
UTX
VZ
WMT
XOM
Sum of portfolio weights
0.1000
0.0000
0.0000
0.0000
0.1000
0.0000
0.1000
0.1000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.1000
0.0000
0.0000
0.1000
0.0000
0.1000
0.0000
0.1000
0.0000
0.0000
0.0000
0.0000
0.0000
0.1000
0.0000
0.1000
1.00
NG PORTFOLIOS
OF THE DJ30 COMPONENTS ON THE S&P500
1
<-- {=INTERCEPT(MMULT('Page 93, middle'!B16:AE75,'Page 94'!B9:B38),'Page 93,
2 middle'!AH16:AH75)}
<-- {=SLOPE(MMULT('Page 93, middle'!B16:AE75,'Page 94'!B9:B38),'Page 93,
<-- {=RSQ(MMULT('Page 93, middle'!B16:AE75,'Page 94'!B9:B38),'Page 93,
<-- {=tintercept(MMULT('Page 93, middle'!B16:AE75,'Page 94'!B9:B38),'Page 93,
<-- {=tslope(MMULT('Page 93, middle'!B16:AE75,'Page 94'!B9:B38),'Page 93,
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39 <-- =SUM(B9:B38)
REGRESSING PORTFOLIOS OF THE DJ30 COMPONENTS ON THE S&P50
1
2 Alpha
-0.0005
3 Beta
1.1421
4 R-squared
0.9460
5 T-Alpha
-0.3669
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
31.8910
T-Beta
Portfolio weights
AA
AIG
AXP
BA
C
CAT
DD
DIS
GE
GM
HD
HON
HPQ
IBM
INTC
JNJ
JPM
KO
MCD
MMM
MO
MRK
MSFT
PFE
PG
T
UTX
VZ
WMT
XOM
Sum of portfolio weights
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
0.0333
1.00
NG PORTFOLIOS
OF THE DJ30 COMPONENTS ON THE S&P500
1
<-- {=INTERCEPT(MMULT('Page 93, middle'!B16:AE75,'Page 95'!B9:B38),'Page 93,
<-- {=SLOPE(MMULT('Page 93, middle'!B16:AE75,'Page 95'!B9:B38),'Page 93,
<-- {=RSQ(MMULT('Page 93, middle'!B16:AE75,'Page 95'!B9:B38),'Page 93,
<-- {=tintercept(MMULT('Page 93, middle'!B16:AE75,'Page 95'!B9:B38),'Page 93,
<-- {=tslope(MMULT('Page 93, middle'!B16:AE75,'Page 95'!B9:B38),'Page 93,
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39 <-- =SUM(B9:B38)
Title:
Series ID:
Source:
Release:
Seasonal Adjustment:
Frequency:
Units:
Date Range:
Last Updated:
Notes:
3-Month Treasury Bill: Secondary Market Rate

TB3MS
Board of Governors of the Federal Reserve System
H.15 Selected Interest Rates
Not Applicable
Monthly
Percent
1934-01-01 to 2006-07-01
2006-08-08 9:12 AM CT
Averages of Business Days, Discount Basis
DATE
VALUE
0.72
0.62
0.24
0.15
0.16
0.15
0.15
0.19
0.21
0.27
0.25
0.23
0.20
0.19
0.15
0.15
0.15
0.15
0.15
0.16
0.20
0.20
0.16
0.15
0.20
0.20
0.20
0.20
0.20
0.20
0.15
0.20
0.16
0.13
0.11
0.12
0.17
0.15
0.38
0.56
1934-01-01
1934-02-01
1934-03-01
1934-04-01
1934-05-01
1934-06-01
1934-07-01
1934-08-01
1934-09-01
1934-10-01
1934-11-01
1934-12-01
1935-01-01
1935-02-01
1935-03-01
1935-04-01
1935-05-01
1935-06-01
1935-07-01
1935-08-01
1935-09-01
1935-10-01
1935-11-01
1935-12-01
1936-01-01
1936-02-01
1936-03-01
1936-04-01
1936-05-01
1936-06-01
1936-07-01
1936-08-01
1936-09-01
1936-10-01
1936-11-01
1936-12-01
1937-01-01
1937-02-01
1937-03-01
1937-04-01
1937-05-01
1937-06-01
1937-07-01
1937-08-01
1937-09-01
1937-10-01
1937-11-01
1937-12-01
1938-01-01
1938-02-01
1938-03-01
1938-04-01
1938-05-01
1938-06-01
1938-07-01
1938-08-01
1938-09-01
1938-10-01
1938-11-01
1938-12-01
1939-01-01
1939-02-01
1939-03-01
1939-04-01
1939-05-01
1939-06-01
1939-07-01
1939-08-01
1939-09-01
1939-10-01
1939-11-01
1939-12-01
1940-01-01
1940-02-01
1940-03-01
1940-04-01
1940-05-01
1940-06-01
1940-07-01
1940-08-01
1940-09-01
1940-10-01
1940-11-01
1940-12-01
1941-01-01
1941-02-01
1941-03-01
1941-04-01
1941-05-01
1941-06-01
1941-07-01
1941-08-01
0.41
0.36
0.28
0.29
0.31
0.20
0.09
0.11
0.10
0.08
0.08
0.09
0.05
0.05
0.07
0.06
0.08
0.05
0.04
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.04
0.05
0.14
0.05
0.05
0.04
0.01
0.02
0.02
0.02
0.06
0.10
0.05
0.04
0.05
0.02
0.02
0.02
0.02
0.04
0.11
0.10
0.11
0.12
0.12
0.13
1941-09-01
1941-10-01
1941-11-01
1941-12-01
1942-01-01
1942-02-01
1942-03-01
1942-04-01
1942-05-01
1942-06-01
1942-07-01
1942-08-01
1942-09-01
1942-10-01
1942-11-01
1942-12-01
1943-01-01
1943-02-01
1943-03-01
1943-04-01
1943-05-01
1943-06-01
1943-07-01
1943-08-01
1943-09-01
1943-10-01
1943-11-01
1943-12-01
1944-01-01
1944-02-01
1944-03-01
1944-04-01
1944-05-01
1944-06-01
1944-07-01
1944-08-01
1944-09-01
1944-10-01
1944-11-01
1944-12-01
1945-01-01
1945-02-01
1945-03-01
1945-04-01
1945-05-01
1945-06-01
1945-07-01
1945-08-01
1945-09-01
1945-10-01
1945-11-01
1945-12-01
0.10
0.09
0.28
0.33
0.27
0.25
0.25
0.32
0.37
0.37
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
1946-01-01
1946-02-01
1946-03-01
1946-04-01
1946-05-01
1946-06-01
1946-07-01
1946-08-01
1946-09-01
1946-10-01
1946-11-01
1946-12-01
1947-01-01
1947-02-01
1947-03-01
1947-04-01
1947-05-01
1947-06-01
1947-07-01
1947-08-01
1947-09-01
1947-10-01
1947-11-01
1947-12-01
1948-01-01
1948-02-01
1948-03-01
1948-04-01
1948-05-01
1948-06-01
1948-07-01
1948-08-01
1948-09-01
1948-10-01
1948-11-01
1948-12-01
1949-01-01
1949-02-01
1949-03-01
1949-04-01
1949-05-01
1949-06-01
1949-07-01
1949-08-01
1949-09-01
1949-10-01
1949-11-01
1949-12-01
1950-01-01
1950-02-01
1950-03-01
1950-04-01
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.38
0.66
0.75
0.80
0.85
0.92
0.95
0.97
1.00
1.00
1.00
1.00
1.00
1.00
1.06
1.09
1.12
1.14
1.16
1.17
1.17
1.17
1.17
1.17
1.17
1.02
1.04
1.07
1.05
1.08
1.10
1.07
1.12
1.12
1.15
1950-05-01
1950-06-01
1950-07-01
1950-08-01
1950-09-01
1950-10-01
1950-11-01
1950-12-01
1951-01-01
1951-02-01
1951-03-01
1951-04-01
1951-05-01
1951-06-01
1951-07-01
1951-08-01
1951-09-01
1951-10-01
1951-11-01
1951-12-01
1952-01-01
1952-02-01
1952-03-01
1952-04-01
1952-05-01
1952-06-01
1952-07-01
1952-08-01
1952-09-01
1952-10-01
1952-11-01
1952-12-01
1953-01-01
1953-02-01
1953-03-01
1953-04-01
1953-05-01
1953-06-01
1953-07-01
1953-08-01
1953-09-01
1953-10-01
1953-11-01
1953-12-01
1954-01-01
1954-02-01
1954-03-01
1954-04-01
1954-05-01
1954-06-01
1954-07-01
1954-08-01
1.16
1.15
1.16
1.20
1.30
1.31
1.36
1.34
1.34
1.36
1.40
1.47
1.55
1.45
1.56
1.62
1.63
1.54
1.56
1.73
1.57
1.54
1.59
1.57
1.67
1.70
1.81
1.83
1.71
1.74
1.85
2.09
1.96
1.97
2.01
2.19
2.16
2.11
2.04
2.04
1.79
1.38
1.44
1.60
1.18
0.97
1.03
0.97
0.76
0.64
0.72
0.92
1954-09-01
1954-10-01
1954-11-01
1954-12-01
1955-01-01
1955-02-01
1955-03-01
1955-04-01
1955-05-01
1955-06-01
1955-07-01
1955-08-01
1955-09-01
1955-10-01
1955-11-01
1955-12-01
1956-01-01
1956-02-01
1956-03-01
1956-04-01
1956-05-01
1956-06-01
1956-07-01
1956-08-01
1956-09-01
1956-10-01
1956-11-01
1956-12-01
1957-01-01
1957-02-01
1957-03-01
1957-04-01
1957-05-01
1957-06-01
1957-07-01
1957-08-01
1957-09-01
1957-10-01
1957-11-01
1957-12-01
1958-01-01
1958-02-01
1958-03-01
1958-04-01
1958-05-01
1958-06-01
1958-07-01
1958-08-01
1958-09-01
1958-10-01
1958-11-01
1958-12-01
1.01
0.98
0.93
1.15
1.22
1.17
1.28
1.59
1.45
1.41
1.60
1.90
2.07
2.23
2.24
2.54
2.41
2.32
2.25
2.60
2.61
2.49
2.31
2.60
2.84
2.90
2.99
3.21
3.11
3.10
3.08
3.07
3.06
3.29
3.16
3.37
3.53
3.58
3.31
3.04
2.44
1.53
1.30
1.13
0.91
0.83
0.91
1.69
2.44
2.63
2.67
2.77
1959-01-01
1959-02-01
1959-03-01
1959-04-01
1959-05-01
1959-06-01
1959-07-01
1959-08-01
1959-09-01
1959-10-01
1959-11-01
1959-12-01
1960-01-01
1960-02-01
1960-03-01
1960-04-01
1960-05-01
1960-06-01
1960-07-01
1960-08-01
1960-09-01
1960-10-01
1960-11-01
1960-12-01
1961-01-01
1961-02-01
1961-03-01
1961-04-01
1961-05-01
1961-06-01
1961-07-01
1961-08-01
1961-09-01
1961-10-01
1961-11-01
1961-12-01
1962-01-01
1962-02-01
1962-03-01
1962-04-01
1962-05-01
1962-06-01
1962-07-01
1962-08-01
1962-09-01
1962-10-01
1962-11-01
1962-12-01
1963-01-01
1963-02-01
1963-03-01
1963-04-01
2.82
2.70
2.80
2.95
2.84
3.21
3.20
3.38
4.04
4.05
4.15
4.49
4.35
3.96
3.31
3.23
3.29
2.46
2.30
2.30
2.48
2.30
2.37
2.25
2.24
2.42
2.39
2.29
2.29
2.33
2.24
2.39
2.28
2.30
2.48
2.60
2.72
2.73
2.72
2.73
2.69
2.73
2.92
2.82
2.78
2.74
2.83
2.87
2.91
2.92
2.89
2.90
1963-05-01
1963-06-01
1963-07-01
1963-08-01
1963-09-01
1963-10-01
1963-11-01
1963-12-01
1964-01-01
1964-02-01
1964-03-01
1964-04-01
1964-05-01
1964-06-01
1964-07-01
1964-08-01
1964-09-01
1964-10-01
1964-11-01
1964-12-01
1965-01-01
1965-02-01
1965-03-01
1965-04-01
1965-05-01
1965-06-01
1965-07-01
1965-08-01
1965-09-01
1965-10-01
1965-11-01
1965-12-01
1966-01-01
1966-02-01
1966-03-01
1966-04-01
1966-05-01
1966-06-01
1966-07-01
1966-08-01
1966-09-01
1966-10-01
1966-11-01
1966-12-01
1967-01-01
1967-02-01
1967-03-01
1967-04-01
1967-05-01
1967-06-01
1967-07-01
1967-08-01
2.93
2.99
3.18
3.32
3.38
3.45
3.52
3.52
3.52
3.53
3.54
3.47
3.48
3.48
3.46
3.50
3.53
3.57
3.64
3.84
3.81
3.93
3.93
3.93
3.89
3.80
3.84
3.84
3.92
4.03
4.09
4.38
4.59
4.65
4.59
4.62
4.64
4.50
4.80
4.96
5.37
5.35
5.32
4.96
4.72
4.56
4.26
3.84
3.60
3.54
4.21
4.27
1967-09-01
1967-10-01
1967-11-01
1967-12-01
1968-01-01
1968-02-01
1968-03-01
1968-04-01
1968-05-01
1968-06-01
1968-07-01
1968-08-01
1968-09-01
1968-10-01
1968-11-01
1968-12-01
1969-01-01
1969-02-01
1969-03-01
1969-04-01
1969-05-01
1969-06-01
1969-07-01
1969-08-01
1969-09-01
1969-10-01
1969-11-01
1969-12-01
1970-01-01
1970-02-01
1970-03-01
1970-04-01
1970-05-01
1970-06-01
1970-07-01
1970-08-01
1970-09-01
1970-10-01
1970-11-01
1970-12-01
1971-01-01
1971-02-01
1971-03-01
1971-04-01
1971-05-01
1971-06-01
1971-07-01
1971-08-01
1971-09-01
1971-10-01
1971-11-01
1971-12-01
4.42
4.56
4.73
4.97
5.00
4.98
5.17
5.38
5.66
5.52
5.31
5.09
5.19
5.35
5.45
5.96
6.14
6.12
6.02
6.11
6.04
6.44
7.00
6.98
7.09
7.00
7.24
7.82
7.87
7.13
6.63
6.51
6.84
6.68
6.45
6.41
6.12
5.91
5.28
4.87
4.44
3.70
3.38
3.86
4.14
4.75
5.40
4.94
4.69
4.46
4.22
4.01
1972-01-01
1972-02-01
1972-03-01
1972-04-01
1972-05-01
1972-06-01
1972-07-01
1972-08-01
1972-09-01
1972-10-01
1972-11-01
1972-12-01
1973-01-01
1973-02-01
1973-03-01
1973-04-01
1973-05-01
1973-06-01
1973-07-01
1973-08-01
1973-09-01
1973-10-01
1973-11-01
1973-12-01
1974-01-01
1974-02-01
1974-03-01
1974-04-01
1974-05-01
1974-06-01
1974-07-01
1974-08-01
1974-09-01
1974-10-01
1974-11-01
1974-12-01
1975-01-01
1975-02-01
1975-03-01
1975-04-01
1975-05-01
1975-06-01
1975-07-01
1975-08-01
1975-09-01
1975-10-01
1975-11-01
1975-12-01
1976-01-01
1976-02-01
1976-03-01
1976-04-01
3.38
3.20
3.73
3.71
3.69
3.91
3.98
4.02
4.66
4.74
4.78
5.07
5.41
5.60
6.09
6.26
6.36
7.19
8.01
8.67
8.29
7.22
7.83
7.45
7.77
7.12
7.96
8.33
8.23
7.90
7.55
8.96
8.06
7.46
7.47
7.15
6.26
5.50
5.49
5.61
5.23
5.34
6.13
6.44
6.42
5.96
5.48
5.44
4.87
4.88
5.00
4.86
1976-05-01
1976-06-01
1976-07-01
1976-08-01
1976-09-01
1976-10-01
1976-11-01
1976-12-01
1977-01-01
1977-02-01
1977-03-01
1977-04-01
1977-05-01
1977-06-01
1977-07-01
1977-08-01
1977-09-01
1977-10-01
1977-11-01
1977-12-01
1978-01-01
1978-02-01
1978-03-01
1978-04-01
1978-05-01
1978-06-01
1978-07-01
1978-08-01
1978-09-01
1978-10-01
1978-11-01
1978-12-01
1979-01-01
1979-02-01
1979-03-01
1979-04-01
1979-05-01
1979-06-01
1979-07-01
1979-08-01
1979-09-01
1979-10-01
1979-11-01
1979-12-01
1980-01-01
1980-02-01
1980-03-01
1980-04-01
1980-05-01
1980-06-01
1980-07-01
1980-08-01
5.20
5.41
5.23
5.14
5.08
4.92
4.75
4.35
4.62
4.67
4.60
4.54
4.96
5.02
5.19
5.49
5.81
6.16
6.10
6.07
6.44
6.45
6.29
6.29
6.41
6.73
7.01
7.08
7.85
7.99
8.64
9.08
9.35
9.32
9.48
9.46
9.61
9.06
9.24
9.52
10.26
11.70
11.79
12.04
12.00
12.86
15.20
13.20
8.58
7.07
8.06
9.13
1980-09-01
1980-10-01
1980-11-01
1980-12-01
1981-01-01
1981-02-01
1981-03-01
1981-04-01
1981-05-01
1981-06-01
1981-07-01
1981-08-01
1981-09-01
1981-10-01
1981-11-01
1981-12-01
1982-01-01
1982-02-01
1982-03-01
1982-04-01
1982-05-01
1982-06-01
1982-07-01
1982-08-01
1982-09-01
1982-10-01
1982-11-01
1982-12-01
1983-01-01
1983-02-01
1983-03-01
1983-04-01
1983-05-01
1983-06-01
1983-07-01
1983-08-01
1983-09-01
1983-10-01
1983-11-01
1983-12-01
1984-01-01
1984-02-01
1984-03-01
1984-04-01
1984-05-01
1984-06-01
1984-07-01
1984-08-01
1984-09-01
1984-10-01
1984-11-01
1984-12-01
10.27
11.62
13.73
15.49
15.02
14.79
13.36
13.69
16.30
14.73
14.95
15.51
14.70
13.54
10.86
10.85
12.28
13.48
12.68
12.70
12.09
12.47
11.35
8.68
7.92
7.71
8.07
7.94
7.86
8.11
8.35
8.21
8.19
8.79
9.08
9.34
9.00
8.64
8.76
9.00
8.90
9.09
9.52
9.69
9.83
9.87
10.12
10.47
10.37
9.74
8.61
8.06
1985-01-01
1985-02-01
1985-03-01
1985-04-01
1985-05-01
1985-06-01
1985-07-01
1985-08-01
1985-09-01
1985-10-01
1985-11-01
1985-12-01
1986-01-01
1986-02-01
1986-03-01
1986-04-01
1986-05-01
1986-06-01
1986-07-01
1986-08-01
1986-09-01
1986-10-01
1986-11-01
1986-12-01
1987-01-01
1987-02-01
1987-03-01
1987-04-01
1987-05-01
1987-06-01
1987-07-01
1987-08-01
1987-09-01
1987-10-01
1987-11-01
1987-12-01
1988-01-01
1988-02-01
1988-03-01
1988-04-01
1988-05-01
1988-06-01
1988-07-01
1988-08-01
1988-09-01
1988-10-01
1988-11-01
1988-12-01
1989-01-01
1989-02-01
1989-03-01
1989-04-01
7.76
8.27
8.52
7.95
7.48
6.95
7.08
7.14
7.10
7.16
7.24
7.10
7.07
7.06
6.56
6.06
6.15
6.21
5.83
5.53
5.21
5.18
5.35
5.53
5.43
5.59
5.59
5.64
5.66
5.67
5.69
6.04
6.40
6.13
5.69
5.77
5.81
5.66
5.70
5.91
6.26
6.46
6.73
7.06
7.24
7.35
7.76
8.07
8.27
8.53
8.82
8.65
1989-05-01
1989-06-01
1989-07-01
1989-08-01
1989-09-01
1989-10-01
1989-11-01
1989-12-01
1990-01-01
1990-02-01
1990-03-01
1990-04-01
1990-05-01
1990-06-01
1990-07-01
1990-08-01
1990-09-01
1990-10-01
1990-11-01
1990-12-01
1991-01-01
1991-02-01
1991-03-01
1991-04-01
1991-05-01
1991-06-01
1991-07-01
1991-08-01
1991-09-01
1991-10-01
1991-11-01
1991-12-01
1992-01-01
1992-02-01
1992-03-01
1992-04-01
1992-05-01
1992-06-01
1992-07-01
1992-08-01
1992-09-01
1992-10-01
1992-11-01
1992-12-01
1993-01-01
1993-02-01
1993-03-01
1993-04-01
1993-05-01
1993-06-01
1993-07-01
1993-08-01
8.43
8.15
7.88
7.90
7.75
7.64
7.69
7.63
7.64
7.74
7.90
7.77
7.74
7.73
7.62
7.45
7.36
7.17
7.06
6.74
6.22
5.94
5.91
5.65
5.46
5.57
5.58
5.33
5.22
4.99
4.56
4.07
3.80
3.84
4.04
3.75
3.63
3.66
3.21
3.13
2.91
2.86
3.13
3.22
3.00
2.93
2.95
2.87
2.96
3.07
3.04
3.02
1993-09-01
1993-10-01
1993-11-01
1993-12-01
1994-01-01
1994-02-01
1994-03-01
1994-04-01
1994-05-01
1994-06-01
1994-07-01
1994-08-01
1994-09-01
1994-10-01
1994-11-01
1994-12-01
1995-01-01
1995-02-01
1995-03-01
1995-04-01
1995-05-01
1995-06-01
1995-07-01
1995-08-01
1995-09-01
1995-10-01
1995-11-01
1995-12-01
1996-01-01
1996-02-01
1996-03-01
1996-04-01
1996-05-01
1996-06-01
1996-07-01
1996-08-01
1996-09-01
1996-10-01
1996-11-01
1996-12-01
1997-01-01
1997-02-01
1997-03-01
1997-04-01
1997-05-01
1997-06-01
1997-07-01
1997-08-01
1997-09-01
1997-10-01
1997-11-01
1997-12-01
2.95
3.02
3.10
3.06
2.98
3.25
3.50
3.68
4.14
4.14
4.33
4.48
4.62
4.95
5.29
5.60
5.71
5.77
5.73
5.65
5.67
5.47
5.42
5.40
5.28
5.28
5.36
5.14
5.00
4.83
4.96
4.95
5.02
5.09
5.15
5.05
5.09
4.99
5.03
4.91
5.03
5.01
5.14
5.16
5.05
4.93
5.05
5.14
4.95
4.97
5.14
5.16
1998-01-01
1998-02-01
1998-03-01
1998-04-01
1998-05-01
1998-06-01
1998-07-01
1998-08-01
1998-09-01
1998-10-01
1998-11-01
1998-12-01
1999-01-01
1999-02-01
1999-03-01
1999-04-01
1999-05-01
1999-06-01
1999-07-01
1999-08-01
1999-09-01
1999-10-01
1999-11-01
1999-12-01
2000-01-01
2000-02-01
2000-03-01
2000-04-01
2000-05-01
2000-06-01
2000-07-01
2000-08-01
2000-09-01
2000-10-01
2000-11-01
2000-12-01
2001-01-01
2001-02-01
2001-03-01
2001-04-01
2001-05-01
2001-06-01
2001-07-01
2001-08-01
2001-09-01
2001-10-01
2001-11-01
2001-12-01
2002-01-01
2002-02-01
2002-03-01
2002-04-01
5.04
5.09
5.03
4.95
5.00
4.98
4.96
4.90
4.61
3.96
4.41
4.39
4.34
4.44
4.44
4.29
4.50
4.57
4.55
4.72
4.68
4.86
5.07
5.20
5.32
5.55
5.69
5.66
5.79
5.69
5.96
6.09
6.00
6.11
6.17
5.77
5.15
4.88
4.42
3.87
3.62
3.49
3.51
3.36
2.64
2.16
1.87
1.69
1.65
1.73
1.79
1.72
2002-05-01
2002-06-01
2002-07-01
2002-08-01
2002-09-01
2002-10-01
2002-11-01
2002-12-01
2003-01-01
2003-02-01
2003-03-01
2003-04-01
2003-05-01
2003-06-01
2003-07-01
2003-08-01
2003-09-01
2003-10-01
2003-11-01
2003-12-01
2004-01-01
2004-02-01
2004-03-01
2004-04-01
2004-05-01
2004-06-01
2004-07-01
2004-08-01
2004-09-01
2004-10-01
2004-11-01
2004-12-01
2005-01-01
2005-02-01
2005-03-01
2005-04-01
2005-05-01
2005-06-01
2005-07-01
2005-08-01
2005-09-01
2005-10-01
2005-11-01
2005-12-01
2006-01-01
2006-02-01
2006-03-01
2006-04-01
2006-05-01
2006-06-01
2006-07-01
1.73
1.70
1.68
1.62
1.63
1.58
1.23
1.19
1.17
1.17
1.13
1.13
1.07
0.92
0.90
0.95
0.94
0.92
0.93
0.90
0.88
0.93
0.94
0.94
1.02
1.27
1.33
1.48
1.65
1.76
2.07
2.19
2.33
2.54
2.74
2.78
2.84
2.97
3.22
3.44
3.42
3.71
3.88
3.89
4.24
4.43
4.51
4.60
4.72
4.79
4.95
KRAFT: CASH FLOWS TO EQUITY HOLDERS, 2001 - 2005

Repurchase of Class A common stock
Dividends paid
Net proceeds from Class A common stock
Cash flow to equity holders
2005/12/31
$1,175,000,000
$1,437,000,000
2004/12/31
$688,000,000
$1,280,000,000
$2,612,000,000
$1,968,000,000
2005/12/31
2004/12/31
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
Net earnings
$2,632,000,000 $2,665,000,000
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization
$879,000,000
$879,000,000
Deferred income tax (benefit) provision
($408,000,000)
$41,000,000
(Gains) losses on sales of businesses,
($108,000,000)
$3,000,000
net
Integration costs, net of cash paid
($1,000,000)
($1,000,000)
Loss on sale of discontinued operations
$32,000,000
Impairment loss on discontinued
$107,000,000
operations
Asset impairment and exit costs, net of
$315,000,000
$493,000,000
cash paid
Cash effects of changes, net of the effects from acquired and divested companies:
Receivables, net
$65,000,000
$23,000,000
Inventories
($42,000,000)
($65,000,000)
Accounts payable
$74,000,000
$152,000,000
Income taxes
($33,000,000)
($251,000,000)
Amounts due to Altria Group, Inc. and
$273,000,000
$74,000,000
affiliates
Other working capital items
($432,000,000)
$90,000,000
Change in pension assets and
($10,000,000)
($436,000,000)
postretirement liabilities, net
Other
$228,000,000
$234,000,000
Net cash provided by operating
$3,464,000,000 $4,008,000,000
activities
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Capital expenditures
($1,171,000,000) ($1,006,000,000)
Purchases of businesses, net of acquired
($137,000,000)
cash
Proceeds from sales of businesses
$1,668,000,000
$18,000,000
Other
$28,000,000
$69,000,000
Net cash provided by (used in) investing

activities
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
Net (repayment) issuance of short-term
borrowings
Long-term debt proceeds
Long-term debt repaid
Repayment of notes payable to Altria Group,
Inc. and affiliates
Increase (decrease) in amounts due to
Altria Group, Inc. and affiliates
Dividends paid
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and
cash equivalents
Cash and cash equivalents:
Increase (decrease)
Balance at beginning of year
Balance at end of year
Cash paid:
Interest
Income taxes
$525,000,000
($1,056,000,000)
($1,005,000,000)
($635,000,000)
$69,000,000
($775,000,000)
$832,000,000
($842,000,000)
$107,000,000
($585,000,000)
($1,175,000,000)
($688,000,000)
($1,437,000,000) ($1,280,000,000)
$265,000,000
($20,000,000)
($3,951,000,000) ($3,218,000,000)
($4,000,000)
$34,000,000
$34,000,000
$282,000,000
$316,000,000
$679,000,000
$1,957,000,000
($232,000,000)
$514,000,000
$282,000,000
$633,000,000
$1,610,000,000
2003/12/31
$372,000,000
$1,089,000,000
$1,461,000,000
2003/12/31
$3,476,000,000
$813,000,000
$244,000,000
($31,000,000)
($26,000,000)
$6,000,000
($45,000,000)
$197,000,000
($116,000,000)
($125,000,000)
$169,000,000
($167,000,000)
($419,000,000)
$143,000,000
$4,119,000,000
($1,085,000,000)
($98,000,000)
$96,000,000
$38,000,000
2002/12/31
$372,000,000
$936,000,000
$8,425,000,000
($7,117,000,000)
2001/12/31
$170,000,000
$225,000,000
$395,000,000
2003/12/31
Cash Provided By (Used In) Operating Activities
Net earnings
$3,476,000,000
$
$813,000,000
Deferred income tax provision
$244,000,000
Gains on sales of businesses
($31,000,000)
Integration costs and a loss on sale of a food
($26,000,000)
factory, net of cash paid
Asset impairment and exit costs, net of cash paid
$6,000,000
Receivables, net
($45,000,000)
Inventories
$197,000,000
Accounts payable
($116,000,000)
Income taxes
($125,000,000)
Amounts due to Altria Group, Inc. and affiliates
$169,000,000
($167,000,000)
Change in pension assets and postretirement
($419,000,000)
liabilities, net
Other
$143,000,000
Net cash provided by operating activities$4,119,000,000
Cash Provided By (Used In) Investing Activities
($1,085,000,000)
Purchases of businesses, net of acquired cash
($98,000,000)
$96,000,000
Other
$38,000,000
Net cash used in investing activities
($1,049,000,000)
Cash Provided By (Used In) Financing Activities
Net issuance (repayment) of short-term borrowings
$819,000,000
$1,577,000,000
($491,000,000)
($2,757,000,000)
Inc. and affiliates
(Decrease) increase in amounts due to Altria($525,000,000)
Group, Inc. and affiliates
($372,000,000)
Dividends paid
($1,089,000,000)
Net proceeds from sale of Class A common stock
Other
$52,000,000
($1,049,000,000)
$819,000,000
$1,577,000,000
($491,000,000)
($2,757,000,000)

($2,786,000,000)
Effect of exchange rate changes on cash and cash
$15,000,000
equivalents
Increase (decrease)
$299,000,000
$215,000,000
$514,000,000
$
Cash paid:
Interest
$642,000,000
$
Income taxes
$1,726,000,000
$
($525,000,000)
($372,000,000)
($1,089,000,000)
$52,000,000
($2,786,000,000)
$15,000,000
$299,000,000
$215,000,000
$514,000,000
$642,000,000
$1,726,000,000

($372,000,000)
Dividends paid
($1,089,000,000)
Net proceeds from sale of Class A common stock
2002/12/31
2001/12/31
$3,394,000,000
$1,882,000,000
ting cash flows:
$716,000,000
$1,642,000,000
$278,000,000
$414,000,000
($80,000,000)
($8,000,000)
$91,000,000
$79,000,000
$128,000,000
m acquired and divested companies:
$116,000,000
$23,000,000
($220,000,000)
($107,000,000)
($116,000,000)
($73,000,000)
$277,000,000
$74,000,000
($244,000,000)
$138,000,000
($330,000,000)
($290,000,000)
($217,000,000)
($305,000,000)
($73,000,000)
($141,000,000)
$3,720,000,000
$3,328,000,000
($1,184,000,000)
($122,000,000)
$219,000,000
$35,000,000
($1,052,000,000)
($1,101,000,000)
($194,000,000)
$21,000,000
$52,000,000
($1,222,000,000)
($1,036,000,000)
$2,505,000,000
$3,325,000,000
$4,077,000,000
($609,000,000)
($705,000,000)
($3,850,000,000) ($16,350,000,000)
$660,000,000
$142,000,000
($170,000,000)
($936,000,000)
($225,000,000)
$8,425,000,000
($2,616,000,000)
$1,000,000
$53,000,000
$162,000,000
$215,000,000
$825,000,000
$1,368,000,000
($170,000,000)
($936,000,000)
($2,131,000,000)
($4,000,000)
($29,000,000)
$191,000,000
$162,000,000
$1,433,000,000
$1,058,000,000
($225,000,000)
$8,425,000,000
KRAFT FOODS INC 10-K 2005-12-31: Balance Sheet

2005/12/31
ASSETS
Receivables (less allowances of $92 in 2005 and $118
in 2004)
Inventories:
Raw materials
Finished product
Deferred income taxes
Assets of discontinued operations held for sale
Other current assets
Total current assets
Property, plant and equipment, at cost:
Land and land improvements
Buildings and building equipment
Machinery and equipment
Construction in progress
Less accumulated depreciation
Goodwill
Other intangible assets, net
Prepaid pension assets
Other assets
TOTAL ASSETS
LIABILITIES
Short-term borrowings
Due to Altria Group, Inc. and affiliates
Accounts payable
Accrued liabilities:
Marketing
Employment costs
Other
Income taxes
Total current liabilities
Long-term debt
Accrued postretirement health care costs
Other liabilities
Total liabilities
Contingencies (Note 18)
SHAREHOLDERS' EQUITY
Class A common stock, no par value (555,000,000
shares issued in 2005 and 2004)
Class B common stock, no par value (1,180,000,000
shares issued and outstanding in 2005 and 2004)
Additional paid-in capital
Earnings reinvested in the business
$316,000,000
$3,385,000,000
$1,363,000,000
$1,980,000,000
$3,343,000,000
$879,000,000
$230,000,000
$8,153,000,000
$388,000,000
$3,551,000,000
$12,008,000,000
$651,000,000
$16,598,000,000
$6,781,000,000
$9,817,000,000
$24,648,000,000
$10,516,000,000
$3,617,000,000
$877,000,000
$57,628,000,000
$805,000,000
$1,268,000,000
$652,000,000
$2,270,000,000
$1,529,000,000
$625,000,000
$1,338,000,000
$237,000,000
$8,724,000,000
$8,475,000,000
$6,067,000,000
$1,931,000,000
$2,838,000,000
$28,035,000,000
$23,835,000,000
$9,453,000,000
Accumulated other comprehensive losses (including

currency translation of $(1,290) in 2005 and $(890) in 2004)
Less cost of repurchased stock (65,119,245 Class A
shares in 2005 and 29,644,926 Class A shares in 2004)
Total shareholders' equity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
Net revenues
Cost of sales
Gross profit
Marketing, administration and research costs
Asset impairment and exit costs
(Gains) losses on sales of businesses, net
Amortization of intangibles
Operating income
Interest and other debt expense, net
Earnings from continuing operations before
income taxes and minority interest
Provision for income taxes
Earnings from continuing operations before
minority interest
Minority interest in earnings from
continuing operations, net
Earnings from continuing operations
(Loss) earnings from discontinued
operations, net of income taxes
Net earnings
Per share data:
Basic earnings per share:
Continuing operations
Discontinued operations
Net earnings
Diluted earnings per share:
Continuing operations
Discontinued operations
Net earnings
($1,663,000,000)
$31,625,000,000
($2,032,000,000)
$29,593,000,000
$57,628,000,000
2005/12/31
$34,113,000,000
$21,845,000,000
$12,268,000,000
$7,135,000,000
$479,000,000
($108,000,000)
$10,000,000
$4,752,000,000
$636,000,000
$4,116,000,000
$1,209,000,000
$2,907,000,000
$3,000,000
$2,904,000,000
($272,000,000)
$2,632,000,000
$1,720,000
($160,000)
$1,560,000
$1,720,000
($170,000)
$1,550,000
2005/12/31
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
Net earnings
Deferred income tax (benefit) provision
(Gains) losses on sales of businesses,
net
$2,632,000,000
$879,000,000
($408,000,000)
($108,000,000)
Integration costs, net of cash paid

($1,000,000)
Loss on sale of discontinued operations
$32,000,000
Impairment loss on discontinued
operations
Asset impairment and exit costs, net of
$315,000,000
cash paid
Receivables, net
$65,000,000
Inventories
($42,000,000)
Accounts payable
$74,000,000
Income taxes
($33,000,000)
Amounts due to Altria Group, Inc. and
$273,000,000
affiliates
($432,000,000)
Change in pension assets and
($10,000,000)
postretirement liabilities, net
Other
$228,000,000
$3,464,000,000
activities
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
($1,171,000,000)
Purchases of businesses, net of acquired
cash
$1,668,000,000
Other
$28,000,000
Net cash provided by (used in) investing
$525,000,000
activities
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
Net (repayment) issuance of short-term
($1,005,000,000)
borrowings
$69,000,000
($775,000,000)
Inc. and affiliates
Increase (decrease) in amounts due to
$107,000,000
Altria Group, Inc. and affiliates
($1,175,000,000)
Dividends paid
($1,437,000,000)
Other
$265,000,000
($3,951,000,000)
Effect of exchange rate changes on cash and
($4,000,000)
cash equivalents
Increase (decrease)
$34,000,000
$282,000,000
$316,000,000
Cash paid:
Interest
$679,000,000
Income taxes
$1,957,000,000
This data was extracted by EdgarScan from the PricewaterhouseCoopers Global Technology Centre.
Please read the on-line disclaimer at http://edgarscan.pwcglobal.com/EdgarScan/edgarscan_disclaimer.html
Tax rate, TC
Shares outstanding (from equity in balance sheet)

Class A
Class B
Repurchased
Total
Note: Yahoo shows 1.66B shares
29.37%
555,000,000
1,180,000,000
65,119,245
1,669,880,755
2004/12/31
$282,000,000
$3,541,000,000
$1,367,000,000
$2,080,000,000
$3,447,000,000
$749,000,000
$1,458,000,000
$245,000,000
$9,722,000,000
$400,000,000
$3,545,000,000
$11,892,000,000
$646,000,000
$16,483,000,000
$6,498,000,000
$9,985,000,000
$25,177,000,000
$10,634,000,000
$3,569,000,000
$841,000,000
$59,928,000,000
$1,818,000,000
$750,000,000
$227,000,000
$2,207,000,000
$1,637,000,000
$732,000,000
$1,537,000,000
$170,000,000
$9,078,000,000
$9,723,000,000
$6,468,000,000
$1,887,000,000
$2,861,000,000
$30,017,000,000
$23,762,000,000
$8,304,000,000
($1,205,000,000)
$30,861,000,000
($950,000,000)
$29,911,000,000
$59,928,000,000
2004/12/31
$32,168,000,000
$20,281,000,000
$11,887,000,000
$6,658,000,000
$603,000,000
$3,000,000
$11,000,000
$4,612,000,000
$666,000,000
$3,946,000,000
2003/12/31
$30,498,000,000
$18,531,000,000
$11,967,000,000
$6,123,000,000
$6,000,000
($31,000,000)
$9,000,000
$5,860,000,000
$665,000,000
$5,195,000,000
$1,274,000,000
$2,672,000,000
$1,812,000,000
$3,383,000,000
$3,000,000
$4,000,000
$2,669,000,000
($4,000,000)
$3,379,000,000
$97,000,000
$2,665,000,000
$3,476,000,000
$1,560,000
$1,950,000
$60,000
$2,010,000
$1,560,000
$1,550,000
$1,550,000
2004/12/31
$2,665,000,000
$879,000,000
$41,000,000
$3,000,000
$1,950,000
$60,000
$2,010,000
2003/12/31
$3,476,000,000
$813,000,000
$244,000,000
($31,000,000)
($1,000,000)
($26,000,000)
$107,000,000
$493,000,000
$6,000,000
$23,000,000
($65,000,000)
$152,000,000
($251,000,000)
$74,000,000
($45,000,000)
$197,000,000
($116,000,000)
($125,000,000)
$169,000,000
$90,000,000
($436,000,000)
($167,000,000)
($419,000,000)
$234,000,000
$4,008,000,000
$143,000,000
$4,119,000,000
($1,006,000,000)
($137,000,000)
($1,085,000,000)
($98,000,000)
$18,000,000
$69,000,000
($1,056,000,000)
$96,000,000
$38,000,000
($1,049,000,000)
($635,000,000)
$819,000,000
$832,000,000
($842,000,000)
$1,577,000,000
($491,000,000)
($2,757,000,000)
($585,000,000)
($525,000,000)
($688,000,000)
($1,280,000,000)
($20,000,000)
($3,218,000,000)
$34,000,000
($372,000,000)
($1,089,000,000)
$52,000,000
($2,786,000,000)
$15,000,000
($232,000,000)
$514,000,000
$282,000,000
$633,000,000
$1,610,000,000
$299,000,000
$215,000,000
$514,000,000
$642,000,000
$1,726,000,000
Technology Centre.
edgarscan_disclaimer.html
32.29%
555,000,000
1,180,000,000
29,644,926
1,705,355,074
34.88%
TYSON FOODS INC 10-K/A 2006-02-08: Cash Flow

2004/02/08
2003/02/08
2005
Cash Flows From Operating Activities:
Net income
$403,000,000
$ 372
$337,000,000
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation
$458,000,000
465
$427,000,000
Amortization
$32,000,000
36
$31,000,000
Plant closing related charges
$28,000,000 10 $22,000,000
Impairment and write-down$46,000,000
of assets
25
$0
Deferred taxes
$8,000,000
(93
$113,000,000
)
Other
$4,000,000
(2
)
$36,000,000
(Increase) decrease in accounts
$67,000,000 24
($179,000,000)
receivable
(Increase) decrease in inventories
($65,000,000) 13
($78,000,000)
Increase in trade accounts$109,000,000
payable
11
$60,000,000
Net change in other current
($158,000,000)
assets and
$51,000,000
138
liabilities
Cash Provided by Operating Activities
$932,000,000 $820,000,000
999
Cash Flows From Investing Activities:
Additions to property, plant ($486,000,000)
and equipment ($402,000,000)
(571
)
Proceeds from sale of assets $27,000,000 47 $30,000,000
Purchases of marketable securities
($99,000,000) (543
) $0
Proceeds from marketable securities $0
504
$0
Net change in other assets and
($42,000,000)
liabilities
2$11,000,000
Cash Used for Investing Activities
($600,000,000) (561
($361,000,000)
)
Cash Flows From Financing Activities:
Payments of debt, net
($242,000,000)
(720($387,000,000)
)
Proceeds from borrowings of debt
$0 353
$0
Purchase of treasury shares ($72,000,000)(45($41,000,000)
)
Dividends
($55,000,000)
(55
) ($54,000,000)
Stock options exercised and other
$43,000,000 24
$0
Cash Used for Financing Activities
($326,000,000) ($482,000,000)
(443
)
Effect of Exchange Rate Change$2,000,000
on Cash
($3,000,000)
12
Increase (Decrease) in Cash and
$8,000,000
Cash
($26,000,000)
7
Equivalents
Cash and Cash Equivalents at $25,000,000
Beginning of Year
$51,000,000
33
Cash and Cash Equivalents at $33,000,000
End of Year
$25,000,000
$ 40
2003/09/27
2002/09/27
2001/09/27
Cash Flows From Operating Activities:
Net income
$
$337,000,000
$383,000,000
$88,000,000
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation
$427,000,000
$431,000,000
$294,000,000
Amortization
$31,000,000
$36,000,000
$41,000,000
Plant closing related charges
$22,000,000
$0
$0
Write-down of intangible asset
$0
$27,000,000
$0
Gain on sale of subsidiary
$0
($22,000,000)
$0
Deferred taxes
$113,000,000
$22,000,000
($47,000,000)
Other
$36,000,000
$20,000,000
$21,000,000
(Increase) decrease in accounts receivable ($179,000,000)
$44,000,000
($45,000,000)
Increase in inventories
($78,000,000)
($4,000,000)
($15,000,000)
Increase (decrease) in trade accounts payable $60,000,000
($30,000,000)
$89,000,000
Net change in other current assets and liabilities$51,000,000
$267,000,000
$85,000,000
Cash Provided by Operating Activities
$820,000,000 $1,174,000,000
$511,000,000
Cash Flows From Investing Activities:
Additions to property, plant and equipment
($402,000,000) ($433,000,000)
($261,000,000)
Proceeds from sale of assets
$30,000,000
$14,000,000
$33,000,000
Proceeds from sale of subsidiary
$0
$131,000,000
$0
Net cash paid for IBP acquisition
$0
$0 ($1,670,000,000)
Acquisitions of property, plant and equipment
$0
($73,000,000)
($33,000,000)
Purchase of Tyson de Mexico minority interest
$0
$0
($19,000,000)
Net change in investment in commercial paper
$4,000,000
$94,000,000
($23,000,000)
Net change in other assets and liabilities
$7,000,000
($61,000,000)
($45,000,000)
Cash Used for Investing Activities
($361,000,000) ($328,000,000) ($2,018,000,000)
Cash Flows From Financing Activities:
Net change in debt
($387,000,000) ($789,000,000) $1,584,000,000
Purchase of treasury shares
($41,000,000)
($19,000,000)
($48,000,000)
Proceeds from exercise of IBP stock options
$0
$0
$34,000,000
Dividends and other
($54,000,000)
($58,000,000)
($35,000,000)
Cash Provided by (Used for) Financing Activities ($482,000,000) ($866,000,000) $1,535,000,000
Effect of Exchange Rate Change on Cash
($3,000,000)
$1,000,000
($1,000,000)
Increase (Decrease) in Cash and Cash Equivalents($26,000,000)
($19,000,000)
$27,000,000
Cash and Cash Equivalents at Beginning of Year $51,000,000
$70,000,000
$43,000,000
Cash and Cash Equivalents at End of Year
$25,000,000
$
$51,000,000
$70,000,000

Current debt
Long term debt
Interest paid
2005
2004
40,000,000
33,000,000
126,000,000
338,000,000
2,869,000,000 3,024,000,000
227,000,000
2005
Sales
Cost of Sales
Operating Expenses:
Selling, general and administrative
Other charges
Operating Income
Other Expense:
Interest
Other
Income Before Income Taxes

Provision for Income Taxes
Net Income
Tax rate
Weighted Average Shares Outstanding:

Class A Basic
Class B Basic
Diluted
Earnings Per Share:
Class A Basic
Class B Basic
Diluted
$26,014
24,274
1,740
2004
$26,441
24,550
1,891
2003
$24,549
22,805
1,744
928
47
765
880
86
925
831
76
837
227
10
237
275
15
290
296
18
314
528
156
$372
635
232
$403
523
186
$337
29.55%
36.54%
35.56%
243
102
357
243
102
357
244
102
352
$1.11
$1.00
$1.04
$1.20
$1.08
$1.13
$1.00
$0.90
$0.96
Less treasury sto

15 million shares
shares in 2004
Less unamortized
Total Shareholde
Total Liabilities a
Assets
Current Assets:
Accounts receivable, net
Inventories
Other current assets
Total Current Assets
Net Property, Plant and Equipment
Goodwill
Intangible Assets
Other Assets
Total Assets
Liabilities and Shareholders Equity

Current Liabilities:
Current debt
Trade accounts payable
Other current liabilities
Total Current Liabilities
Long-Term Debt
Deferred Income Taxes
Other Liabilities
Shareholders Equity:
Common stock ($0.10 par value):
Class A-authorized 900 million shares:
issued 268 million shares in 2005 and
2005
2004
$40
1,214
2,062
169
3,485
4,007
2,502
142
368
$10,504
$33
1,240
2,063
196
3,532
3,964
2,558
149
261
$10,464
$126
961
1,070
2,157
2,869
638
169
$338
945
1,010
2,293
3,024
695
160
27
27
10
10
1,867
3,032
28
4,964
1,849
2,728
-12
4,602
238
264
55
46
2004
Class B-authorized 900 million shares:
issued 102 million shares in 2005 and
2004
Capital in excess of par value
Retained earnings
Accumulated other comprehensive income (loss
Less treasury stock, at cost15 million shares in 2005 and 17 million
shares in 2004
Less unamortized deferred compensation
Total Shareholders Equity

Total Liabilities and Shareholders Equity
4,671
$10,504
4,292
$10,464
CASCADE CORPORATION: CASH FLOWS TO EQUITY

Dividends
Share repurchases
Shares issued
2006/01/31
$6,691,000
2005/01/31
$5,478,000
$2,787,000
$1,616,000
2004/01/31 2003/01/31 2002/01/31

$4,936,000 $1,200,000
$0
$0 $1,396,000 $1,354,000
$1,299,000
$73,000
2006/01/31
2005/01/31
2004/01/31
Cash flows from operating activities:
Net income
$42,051,000 $28,490,000 $18,506,000
Adjustments to reconcile net income to net cash provided by operating activities:
$16,005,000 $14,570,000 $12,664,000
Share-based compensation
$2,278,000
$2,492,000
$0
($2,995,000) $2,062,000
$1,802,000
Loss on disposition of assets
$385,000
$3,000
$102,000
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable
$2,023,000 ($12,803,000) ($9,810,000)
Inventories
($12,026,000) ($8,320,000) ($2,235,000)
Prepaid expenses and other
($141,000)
$34,000
$38,000
Accounts payable and accrued expenses $2,378,000
$8,342,000
$538,000
Current income tax payable and receivable $245,000
$2,210,000
$3,415,000
Other assets and liabilities
$222,000
$728,000
$1,221,000
Net cash provided by operating activities $50,425,000 $37,808,000 $26,241,000
Cash flows from investing activities:
($10,580,000) ($13,581,000) ($11,403,000)
Sale of marketable securities
$71,549,000 $21,246,000 $25,225,000
Purchase of marketable securities
($93,050,000) ($17,791,000) ($31,227,000)
Business acquisitions
$0 ($6,236,000) ($11,677,000)
$358,000
$314,000
$844,000
Other assets
$0
$147,000
($930,000)
Proceeds from sale of investment
$0
$1,044,000
$0
Proceeds from notes receivable
$0
$0
$9,556,000
Net cash used in investing activities
($31,723,000) ($14,857,000) ($19,612,000)
Cash flows from financing activities:
Cash dividends paid
($6,691,000) ($5,478,000) ($4,936,000)
Payments on long-term debt and capital leases
($12,922,000) ($13,026,000) ($12,850,000)
Notes payable to banks, net
$2,452,000
($344,000) $1,606,000
Common stock issued under share-based compensation
$2,787,000
$1,616,000
$1,299,000
plans
Excess tax benefit from exercise of share-based
$1,183,000
$340,000
$166,000
compensation awards

($13,191,000) ($16,892,000) ($14,715,000)
Effect of exchange rate changes
($500,000) ($1,161,000) $4,169,000
Change in cash and cash equivalents
$5,011,000
$4,898,000 ($3,917,000)
Cash and cash equivalents at beginning of$30,482,000
year
$25,584,000 $29,501,000
Cash and cash equivalents at end of period
$35,493,000 $30,482,000 $25,584,000
Supplemental disclosure of noncash information:
of year
2001/01/31
$2,448,000
$0
2000/01/31
$5,321,000
$1,844,000
2004/01/31
2003/01/31
2002/01/31
Net income
$18,506,000 $17,707,000
$4,127,000
$12,664,000 $10,793,000 $14,748,000
$1,802,000
$2,395,000 ($5,646,000)
$102,000
$54,000
$101,000
Income from discontinued operations, net
$0
$0
($485,000)
of income taxes
Loss on sale of discontinued operations,
$0
$0
$1,660,000
net of income taxes
Loss on goodwill impairment
$0
$0
$5,100,000
Allowance for (recovery of) note
$0 ($2,500,000) $7,308,000
receivable
Accounts receivable
($9,810,000) ($3,472,000) $10,067,000
Inventories
($2,235,000)
$386,000
$4,706,000
$3,619,000 ($4,149,000)
($39,000)
Accounts payable and accrued expenses
$538,000
$3,902,000 ($6,534,000)
Accrued environmental expenses
($799,000) ($2,297,000) ($3,901,000)
Other liabilities
$2,020,000
$1,122,000
$503,000
Cash provided by continuing operations
$26,407,000 $23,941,000 $31,715,000
Cash provided by discontinued operations
$0
$0
$3,121,000
$26,407,000 $23,941,000 $34,836,000
activities
($11,403,000) ($10,665,000) ($7,303,000)
$844,000
$268,000
$257,000
Advances on notes receivable
$0 ($2,102,000)
$0
Proceeds from notes receivable
$9,556,000
$4,786,000
$0
Purchase of marketable securities, net
($6,002,000)
$0
$0
Business acquisitions
($11,677,000)
$0
$0
Other assets
($930,000)
($5,000) $1,276,000
Proceeds from sale of discontinued
$0
$0
$3,250,000
operations
Cash used in continuing operations ($19,612,000)
Cash used in discontinued operations
$0
Net cash used in investing activities($19,612,000)
Payments on long-term debt
($12,850,000)
$1,606,000
Repurchase of common stock
$0
Common stock issued under stock option
$1,299,000
plan
Cash dividends paid
($4,936,000)
Net cash used in financing activities($14,881,000)
$4,169,000
Change in cash and cash equivalents($3,917,000)
Cash and cash equivalents at beginning
$29,501,000
of year
Cash and cash equivalents at end of$25,584,000
year
($7,718,000)
$0
($7,718,000)
($2,520,000)
($681,000)
($3,201,000)
($15,833,000) ($10,694,000)
$300,000 ($4,357,000)
($1,396,000) ($1,354,000)
$73,000
$0
($1,200,000)
$0
($18,056,000) ($16,405,000)
$5,723,000 ($2,037,000)
$3,890,000 $13,193,000
$25,611,000 $12,418,000
$29,501,000
$25,611,000
Dividends
Share repurchases
Shares issue
2002/01/31
2001/01/31
2000/01/31
Net income
$4,127,000 $11,863,000
$4,934,000
(Income) loss from discontinued
($485,000) ($2,089,000)
$490,000
Loss on sale of discontinued
$1,660,000
$0
$0
Goodwill impairment
$5,100,000
$0
$0
Allowance for note receivable
$7,308,000
$0
$0
$14,748,000 $15,897,000 $16,060,000
($5,646,000)
$196,000 ($9,638,000)
$101,000
$59,000
$1,076,000
Accounts receivable
$10,067,000
($487,000) $10,660,000
Inventories
$4,706,000
$4,673,000
$3,921,000
($39,000) ($1,849,000) $5,793,000
Accounts payable and accrued expenses
($6,534,000) ($4,395,000) $3,529,000
($3,901,000) ($1,921,000) $10,087,000
Other liabilities
$503,000
$211,000
$1,032,000
Cash provided by continuing
$31,715,000 $22,158,000 $47,944,000
operations
Cash provided by discontinued
$3,121,000
$5,891,000
$2,191,000
operations
$34,836,000 $28,049,000 $50,135,000
activities
($7,303,000) ($5,549,000) ($13,811,000)
$257,000
$1,367,000 $29,785,000
Proceeds from sale of discontinued
$3,250,000
$0
$0
operations
Other assets
$1,276,000
($439,000)
($540,000)
Cash provided by (used in) continuing
($2,520,000) ($4,621,000) $15,434,000
operations
Cash provided by (used in) discontinued

($681,000)
operations
Net cash provided by (used in)
($3,201,000)
investing activities
Payments on long-term debt
($10,694,000)
Proceeds from long-term debt
$0
($4,357,000)
Redemption of convertible preferred stock
$0
and minority interest
Repurchase of common stock
($1,354,000)
Cash dividends paid
$0
($16,405,000)
($2,037,000)
Change in cash and cash equivalents
$13,193,000
Cash and cash equivalents at beginning of
$12,418,000
year
Cash and cash equivalents at end of period
$25,611,000
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest
$6,440,000
Income taxes
$5,549,000
Supplemental disclosure of noncash information:
Receivable from capital lease
$0
Receivables received upon sale of assets
$9,561,000
Conversion of convertible preferred stock
$0
to common stock
($1,607,000)
($3,023,000)
($6,228,000) $12,411,000
($27,470,000) ($61,783,000)
$1,910,000 $28,844,000
($3,309,000) ($1,409,000)
$0 ($4,162,000)
$0 ($1,844,000)
($2,448,000) ($5,321,000)
($31,317,000) ($45,675,000)
($1,274,000) ($5,143,000)
($10,770,000) $11,728,000
$23,188,000 $11,460,000
$12,418,000
$23,188,000
$8,376,000
$13,378,000
$8,515,000
$8,561,000
$2,036,000
$0
$0
$0
$7,308,000
$413,000
CASCADE CORP 10-K 2006-01-31: Income Statement

Net sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Amortization
Insurance litigation recovery
Environmental expenses
Operating income
Interest expense
Interest income
Other (income) expense, net
Income before provision for income taxes
Provision for income taxes
Net income
Dividends paid on preferred shares of subsidiary
Net income applicable to common shareholders
Basic earnings per share
Diluted earnings per share
Basic weighted average shares outstanding
Diluted weighted average shares outstanding
2006/01/31
2005/01/31
2004/01/31
$450,503,000 $385,719,000 $297,756,000
$307,774,000 $262,537,000 $202,120,000
$142,729,000 $123,182,000
$95,636,000
$77,392,000
$75,892,000
$63,099,000
$1,443,000
$658,000
$512,000
$0
($1,300,000)
$0
$0
$155,000
$0
$63,894,000
$47,777,000
$32,025,000
$2,741,000
$3,570,000
$4,570,000
($979,000)
($562,000) ($1,016,000)
($95,000)
($218,000)
$40,000
$62,227,000
$44,987,000
$28,431,000
$20,176,000
$16,497,000
$9,925,000
$42,051,000
$28,490,000
$18,506,000
$0
$0
($30,000)
$42,051,000
$28,490,000
$18,476,000
$3,400
$2,340
$1,550
$3,270
$2,240
$1,490
$12,354,000
$12,164,000
$11,934,000
$12,850,000
$12,726,000
$12,409,000
CASCADE CORP 10-K 2006-01-31: Balance Sheet

2006/01/31
2005/01/31
ASSETS
Current assets:
$35,493,000
$30,482,000
Marketable securities
$23,004,000
$1,503,000
Accounts receivable, less allowance for doubtful accounts
$67,020,000
$70,728,000
of $1,415 and $2,182
Inventories
$56,996,000
$46,212,000
$3,232,000
$3,042,000
$5,373,000
$4,592,000
Total current assets
$191,118,000 $156,559,000
Property, plant and equipment, net
$75,374,000
$82,027,000
Goodwill
$78,820,000
$74,786,000
$11,851,000
$9,688,000
Other assets
$4,120,000
$5,032,000
Total assets
$361,283,000 $328,092,000
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Notes payable to banks
$4,741,000
$2,461,000
$12,681,000
$12,916,000
Accounts payable
$25,124,000
$25,778,000
Accrued payroll and payroll taxes
$8,710,000
$7,283,000
$984,000
$894,000
Other accrued expenses
$13,916,000
$13,073,000
Total current liabilities
$66,156,000
$62,405,000
Long-term debt, net of current portion

$12,500,000
$6,951,000
$4,009,000
Other liabilities
$12,261,000
Total liabilities
$101,877,000
Commitments and contingencies (Note 13)
Shareholders equity:
Common stock, $.50 par value, 20,000 authorized shares;
$6,268,000
12,536 and 12,224 shares issued and outstanding
Additional paid-in capital
$21,590,000
Unamortized deferred compensation
$0
Retained earnings
$223,867,000
Accumulated other comprehensive income
$7,681,000
Total shareholders equity
$259,406,000
Total liabilities and shareholders equity
$361,283,000
Cascade tax rate
32.42%
$25,187,000
$7,799,000
$3,988,000
$10,830,000
$110,209,000
$6,112,000
$20,004,000
($4,506,000)
$188,507,000
$7,766,000
$217,883,000
$328,092,000
36.67%
Cascade Annual Dividends

2001
2002
2003
2004
2005
0
0.1
0.41
0.45
0.54
Growth rate
75.44% <-- =(B6/B3)^(1/3)-1
14.76% <-- =(B6/B4)^(1/2)-1
Note the divs are for the year ending 31jan of next
ding 31jan of next

Financial Modeling Chapter 2

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A

Gordon model cost of equity rE

4.25% <-- =B5*(1+B7)/B2+B7

JOHNSON & JOHNSON, CASH FLOW TO EQUITY, 1995-2005

End 2005 equity data

Equity cash flow, end 2005

4,814,000,000 <-- =E13

Gordon cost of equity, rE

19.54% <-- =B20*(1+B22)/B18+B22

For x-axes on graph

1,037,000,000 <-- =SUM(B3:D3)

JNJ, CASH FLOW TO EQUITY, 1995-2005

Cash flow to equity

COMPUTING JNJ's rE BASED ON DIVIDENDS PER SHARE

18.08% <-- =B5*(1+C8)/B2+C8

MODEL WITH TWO GROWTH RATES

WACHOVIA BANK--DIVIDENDS, STOCK ISSUED AND STOCK REPURCHAS

Common stock issued

AND STOCK REPURCHASED

WACHOVIA, TWO-STAGE GORDON MODEL

17.251% <-- =twostagegordon(B2,B3,B5,B6,B7)

COMPUTING THE BETA FOR INTEL

-0.0029 <-- =INTERCEPT(E13:E72,F13:F72)

COMPUTING THE BETA FOR INTEL

monthly returns for Intel and SP500, 2001-2006

-9.68% <-- =LN(C12/C11)

Cells J14:K18created with the

COMPUTING BETA FOR INTEL

Monthly returns for Intel and S&P500, 2001-2006

-0.0968 <-- =LN(C11/C10)

COMPUTING THE COST OF EQUITY FOR INTEL

COMPUTING INTEL'S TAX RATE

COMPUTING THE COST OF EQUITY FOR INTEL

5 Expected market return, E(rM)

MEASURING E(rM) USING HISTORICAL DATA

0.83% <-- =AVERAGE(C10:C241)

MEASURING THE MARKET RISK PREMIUM E(rM) - rf USING HISTORICA

Vanguard 500 Index Fund (symbol: VFINX) minus Treasury Bills

0.46% <-- =AVERAGE(E10:E241)

REMIUM E(rM) - rf USING HISTORICAL DATA

(symbol: VFINX) minus Treasury Bills

Methodological note: I have used the St. Louis FRED

I've use 3-month instead of 1-month, because there

COMPUTING THE COST OF EQUITY FOR INTEL USING THE

6 Intel cost of equity, rE,Intel

17.31% <-- =B5+B2*B3

Note: The tax-adjusted model in cell B8 uses the equivalence:

COMPUTING THE COST OF EQUITY FOR INTEL USING THE MARKET

Intel cost of equity calculations

10 Risk free rate, rf

QUITY FOR INTEL USING THE MARKET

COMPUTING THE COST OF DEBT FOR KRAFT

Cash and cash equivalents

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

DEBT FOR1 KRAFT

PANHANDLE EASTN PIPE LINE CO

GENERAL MLS INC

CADBURY SCHWEPPES US FINANACE

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