The Gordon Model Cost of Equity

A B C
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%
A B C
1 KELLOGG DIVIDENDS, MAY1996 - MAY2006
2 Dividend growth rate, quarterly
3 last 5 years 0.47%
4 last 10 years 0.89%
5
6 Dividend growth rate, annualized
7 Last 5 years 1.90%
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
A B C
COMPUTING KELLOGG'S rE
1
WITH THE GORDON MODEL
2 Kellogg stock price, P0, 30 May 2006 48.28
3 Current dividend
4 Quarterly 0.278
5 Annualized dividend, Div0 1.112
6 Dividend growth rate, g
9
10 Gordon model cost of equity rE
11 Using last 5 years' growth 4.25%
12 Using last 10 years' growth 6.00%
A B C D
1 JOHNSON & JOHNSON, CASH FLOW TO EQUITY, 1995-2005

Repurchase of
2 Year ending Dividends Stock issues
common stock
3 31-Dec-95 827,000,000 322,000,000 -112,000,000
4 31-Dec-96 974,000,000 412,000,000 -149,000,000
5 31-Dec-97 1,137,000,000 628,000,000 -225,000,000
6 31-Dec-98 1,305,000,000 930,000,000 -269,000,000
7 31-Dec-99 1,479,000,000 840,000,000 -221,000,000
8 31-Dec-00 1,724,000,000 973,000,000 -387,000,000
9 31-Dec-01 2,047,000,000 2,570,000,000 -514,000,000
10 31-Dec-02 2,381,000,000 6,538,000,000 -390,000,000
11 31-Dec-03 2,746,000,000 1,183,000,000 -311,000,000
12 31-Dec-04 3,251,000,000 1,384,000,000 -642,000,000
13 31-Dec-05 3,793,000,000 1,717,000,000 -696,000,000
14
15 End 2005 equity data
16 Stock price 61.07
17 Number of shares 3,119,842,000
18 Equity value 190,528,750,940
19
20 Equity cash flow, end 2005 4,814,000,000
21 Future growth rate
22 Based on 10-year growth rate 16.59%
24
25 Gordon cost of equity, rE
28
29 Note: Stock issues are proceeds from issuance of stock options (most to employees)
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31
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33 For x-axes on graph y-axes
34 35,064 8,529,000,000
35 38,717 -696,000,000
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E F G H I J K L
OW TO EQUITY,
1 1995-2005
Cash flow to Year on year
2
equity growth
3 1,037,000,000 #VALUE!
4 1,237,000,000 19.29%
5 1,540,000,000 24.49%
6 1,966,000,000 27.66%
7 2,098,000,000 6.71%
8 2,310,000,000 10.10%
9 4,103,000,000 77.62%
10 8,529,000,000 107.87%
11 3,618,000,000 -57.58%
12 3,993,000,000 10.36%
13 4,814,000,000 20.56%
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17
18
19
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25
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29
30
31 9,000,000,000 JNJ, CASH FLOW TO EQUITY, 1995-2005
32
33
8,000,000,000
34
7,000,000,000
35
36 Total dividends
6,000,000,000
37 Stock repurchases
38 5,000,000,000 Stock issues
39 Cash flow to equity
40 4,000,000,000
41
42 3,000,000,000
43
44
2,000,000,000
45
1,000,000,000
46
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
-1,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
E F G H I J K L
47 0
48 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
49 -1,000,000,000
50
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2003 2004 2005

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2003 48
2004 2005
49
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A B C D E
1 COMPUTING JNJ's rE BASED ON DIVIDENDS PER SHARE

2 JNJ's stock price, P0, 31 Dec 2005 61.07
3 Current dividend
4 Quarterly 0.33
5 Annualized dividend, Div0 1.32
6
7 Dividend growth rate, g Quarterly Annualized
8 Growth since 17-Nov-00 3.69% 15.58%
9 Growth since 14-Nov-03 4.06% 17.26%
10
11 Gordon model cost of equity rE
12 Growth since 17-Nov-00 18.08%
13 Growth since 14-Nov-03 19.79%
14
Dividend per
15
Date share
16 1 17-Nov-00 0.160
17 2 15-Feb-01 0.160
18 3 18-May-01 0.180
19 4 17-Aug-01 0.180
20 5 16-Nov-01 0.180
21 6 14-Feb-02 0.180
22 7 17-May-02 0.205
23 8 16-Aug-02 0.205
24 9 15-Nov-02 0.205
25 10 13-Feb-03 0.205
26 11 16-May-03 0.240
27 12 15-Aug-03 0.240
28 13 14-Nov-03 0.240
29 14 12-Feb-04 0.240
30 15 14-May-04 0.285
31 16 13-Aug-04 0.285
32 17 12-Nov-04 0.285
33 18 11-Feb-05 0.285
34 19 13-May-05 0.330
35 20 19-Aug-05 0.330
36 21 18-Nov-05 0.330
A B
1 THE GORDON MODEL WITH TWO GROWTH RATES
2 Current dividend, Div0 8.00
3 Growth rate g1, years 1-m ("supernormal") 35%
4 Growth rate g2, years 6 - ¥ 8%
5 Number of supernormal growth years, m 5
6 Cost of equity 18%
7
8 Dividend valuation
9 PV of supernormal growth years
10 Using Excel NPV 60.99
11 Check: Using book formula 60.99
12 PV of normal growth years, after year 5 n
13 Share value 60.99
14
Anticipated
15
Year dividend
16 1 10.80
17 2 14.58
18 3 19.68
19 4 26.57
20 5 35.87
21 6 38.74
22 7 41.84
23 8 45.19
24 9 48.80
25 10 52.71
26 11 56.92
27 12 61.48
28 etc. etc.
C
DON MODEL
1 WITH TWO GROWTH RATES
2
3
4
5
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7
8
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$60.99
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A B C D E
1
WACHOVIA BANK--DIVIDENDS, STOCK ISSUED AND STOCK REPURCHA
Does historical growth overstate the cost of equity?
Common
2 Common Total Dividend stock Total equity
stock issued payments repurchased cash flow
3 1991 16,462,000 150,730,000 1,215,000 135,483,000
4 1992 29,717,000 170,756,000 31,197,000 172,236,000
5 1993 24,961,000 191,488,000 98,804,000 265,331,000
6 1994 25,339,000 210,503,000 52,908,000 238,072,000
7 1995 24,115,000 235,495,000 65,032,000 276,412,000
8 1996 25,826,000 254,458,000 376,716,000 605,348,000
9 1997 59,281,000 327,303,000 532,682,000 800,704,000
10 1998 80,375,000 381,798,000 531,122,000 832,545,000
11 1999 59,478,000 418,447,000 634,623,000 993,592,000
12
13 Compound growth rate 17.42% 13.61% 118.65% 28.28%
14
Cost of capital using the Gordon Model
15
Using total equity payout and total equity value
16 End 1999 stock price 68.00
Number of shares
17
outstanding, end 1999 202,795,000
18 Future dividend growth, g? 28.28% #VALUE!
19 End 1999 equity value, P0 13,790,060,000 #VALUE!
Projected next total
20
equity cash flow, D1 1,274,598,774 #VALUE!
Gordon model cost
21
of equity, rE 37.52% #VALUE!
22
23
24
25
26
Shares Total equity
27 outstanding, Dividend per payout
annual average share per share
28 169,841,000 0.89 0.80
29 170,673,000 1.00 1.01
30 172,273,000 1.11 1.54
31 172,339,000 1.22 1.38
32 170,635,000 1.38 1.62
33 167,255,000 1.52 3.62
34 198,290,000 1.65 4.04
35 205,058,000 1.86 4.06
36 202,795,000 2.06 4.90
37
A B C D E
38 11.12% 25.47%
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54 1999 1998 1997 1996
55 Common stock issued 59,478,000 80,375,000 59,281,000 25,826,000
56 Dividend payments 418,447,000 381,798,000 327,303,000 254,458,000
57 Common stock repurchased 634,623,000 531,122,000 532,682,000 376,716,000
58 Total equity payout 1,112,548,000 993,295,000 919,266,000 657,000,000
59
Number of shares
60 outstanding
end of year 202,795,000 205,058,000 198,290,000 167,255,000
61
62 Dividends per share 2.06 1.86 1.65 1.52
F G H
AND STOCK 1
REPURCHASED
e cost of equity?
3 #VALUE!
4 #VALUE!
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13 #VALUE!
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F G H
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54 1994 1993 1992
55 25,339,000 24,961,000 29,717,000
56 210,503,000 191,488,000 170,756,000
57 52,908,000 98,804,000 31,197,000
58 288,750,000 315,253,000 231,670,000
59
60
172,339,000 172,273,000 170,763,000
61
62 1.22 1.11 1.00
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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 B
1 WACHOVIA, TWO-STAGE GORDON MODEL
2 End-1999 equity value, P0 13,790,060,000
3 End 1999 total equity payout 993,592,000
4
5 High growth rate, ghigh 28.28%
6 Number of high-growth years, m 3
7 Normal growth rate, gnormal 4%
8
Cost of equity, rE
9
using the function TwoStageGordon #VALUE!
C
O-STAGE GORDON
1 MODEL
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3
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9
#VALUE!
A B C D E F
1
COMPUTING THE BETA FOR INTEL
monthly returns for Intel and S&P 500, 2001-2006
2 Alpha -0.0029 #VALUE!
3 Beta
4 Using Excel's Slope function 2.2516 #VALUE!
5 Using Cov/Var 2.2516 #VALUE!
6 R-squared 0.5304 #VALUE!
7 t-statistic for alpha #VALUE! #VALUE!
8 t-statistic for beta #VALUE! #VALUE!
9
10 Prices Returns
11 Date Intel SP500 Intel SP500
12 9-Jan-01 35.38 1366.01
13 1-Feb-01 27.32 1239.94 -25.85% -9.68%
14 1-Mar-01 25.17 1160.33 -8.20% -6.64%
15 2-Apr-01 29.57 1249.46 16.11% 7.40%
16 1-May-01 25.86 1255.82 -13.41% 0.51%
17 1-Jun-01 28 1224.38 7.95% -2.54%
18 2-Jul-01 28.54 1211.23 1.91% -1.08%
1-Aug-01
Intel Returns vs
26.78 1133.58
SP500, 2001-2006-6.37% -6.63%
19
20 4-Sep-01 19.58 1040.94 25% -31.31% -8.53%
21 1-Oct-01 23.39 1059.78 17.78% 1.79%
22 f(x) = 2.38202384015865 x +
1-Nov-01 0.01234236305132
31.31 1139.45 29.16% 7.25%
23 R² = 0.582759751592986 30.15
3-Dec-01 1148.08 15% -3.78% 0.75%
24 2-Jan-02 33.59 1130.2 10.80% -1.57%
25 1-Feb-02 27.38 1106.73 -20.44% -2.10%
26 1-Mar-02 29.17 1147.39 5% 6.33% 3.61%
27 1-Apr-02 27.44 1076.92 -6.11% -6.34%
28 1-May-02 26.51 1067.14 -3.45% -0.91%
-13% -11% -9% -7% -5% -3% -1% 1% 3% 5% 7%
29 3-Jun-02 17.54 989.82 -5% -41.30% -7.52%
Intel returns
30 1-Jul-02 18.04 911.62 2.81% -8.23%

31 1-Aug-02 16.02 916.07 -11.88% 0.49%
32 3-Sep-02 13.35 815.28 -15% -18.23% -11.66% SP500 returns
33 1-Oct-02 16.62 885.76 21.91% 8.29%
34 1-Nov-02 20.09 936.31 18.96% 5.55%
35 2-Dec-02 14.98 879.82 -25% -29.35% -6.22%
36 2-Jan-03 15.06 855.7 0.53% -2.78%
37 3-Feb-03 16.62 841.15 9.86% -1.71%
38 3-Mar-03 15.68 848.18 -35% -5.82% 0.83%
39 1-Apr-03 17.72 916.92 12.23% 7.79%
40 1-May-03 20.08 963.59 12.50% 4.96%
41 2-Jun-03 20.07 974.5 -45%
-0.05% 1.13%
42 1-Jul-03 24 990.31 17.88% 1.61%
43 1-Aug-03 27.59 1008.01 13.94% 1.77%
44 2-Sep-03 26.56 995.97 -3.80% -1.20%
70 1-Nov-05 26.27 1249.48 13.03% 3.46%
71 1-Dec-05 24.57 1248.29 -6.69% -0.10%
72 3-Jan-06 25.9 1285.45 5.27% 2.93%
G
NTEL 1
2001-2006
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13 #VALUE!
14 #VALUE!
15 #VALUE!
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1% 3% 5% 7%
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SP500 returns
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70
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A B C D E F G H
1
COMPUTING THE BETA FOR INTEL
monthly returns for Intel and SP500, 2001-2006
3 Beta 2.2516 #VALUE!
5 t-statistic for alpha #VALUE! #VALUE!
6 t-statistic for beta #VALUE! #VALUE!
7
8
9 Prices Returns
11 9-Jan-01 35.38 1366.01
12 1-Feb-01 27.32 1239.94 -25.85% -9.68% #VALUE!
13 1-Mar-01 25.17 1160.33 -8.20% -6.64% #VALUE!
14 2-Apr-01 29.57 1249.46 16.11% 7.40% #VALUE!
15 1-May-01 25.86 1255.82 -13.41% 0.51%
16 1-Jun-01 28.00 1224.38 7.95% -2.54%
17 2-Jul-01 28.54 1211.23 1.91% -1.08%
18 1-Aug-01 26.78 1133.58 -6.37% -6.63%
19 4-Sep-01 19.58 1040.94 -31.31% -8.53%
20 1-Oct-01 23.39 1059.78 17.78% 1.79%
21 1-Nov-01 31.31 1139.45 29.16% 7.25%
22 3-Dec-01 30.15 1148.08 -3.78% 0.75%
23 2-Jan-02 33.59 1130.20 10.80% -1.57%
24 1-Feb-02 27.38 1106.73 -20.44% -2.10%
25 1-Mar-02 29.17 1147.39 6.33% 3.61%
26 1-Apr-02 27.44 1076.92 -6.11% -6.34%
27 1-May-02 26.51 1067.14 -3.45% -0.91%
28 3-Jun-02 17.54 989.82 -41.30% -7.52%
29 1-Jul-02 18.04 911.62 2.81% -8.23%
30 1-Aug-02 16.02 916.07 -11.88% 0.49%
31 3-Sep-02 13.35 815.28 -18.23% -11.66%
32 1-Oct-02 16.62 885.76 21.91% 8.29%
33 1-Nov-02 20.09 936.31 18.96% 5.55%
34 2-Dec-02 14.98 879.82 -29.35% -6.22%
35 2-Jan-03 15.06 855.70 0.53% -2.78%
36 3-Feb-03 16.62 841.15 9.86% -1.71%
37 3-Mar-03 15.68 848.18 -5.82% 0.83%
38 1-Apr-03 17.72 916.92 12.23% 7.79%
39 1-May-03 20.08 963.59 12.50% 4.96%
40 2-Jun-03 20.07 974.50 -0.05% 1.13%
41 1-Jul-03 24.00 990.31 17.88% 1.61%
42 1-Aug-03 27.59 1008.01 13.94% 1.77%
43 2-Sep-03 26.56 995.97 -3.80% -1.20%
44 1-Oct-03 31.80 1050.71 18.01% 5.35%
45 3-Nov-03 32.39 1058.20 1.84% 0.71%
46 1-Dec-03 30.95 1111.92 -4.55% 4.95%
47 2-Jan-04 29.47 1131.13 -4.90% 1.71%
A B C D E F G H
48 2-Feb-04 28.23 1144.94 -4.30% 1.21%
49 1-Mar-04 26.30 1126.21 -7.08% -1.65%
50 1-Apr-04 24.88 1107.30 -5.55% -1.69%
51 3-May-04 27.64 1120.68 10.52% 1.20%
52 1-Jun-04 26.72 1140.84 -3.39% 1.78%
53 1-Jul-04 23.61 1101.72 -12.37% -3.49%
54 2-Aug-04 20.65 1104.24 -13.40% 0.23%
55 1-Sep-04 19.46 1114.58 -5.94% 0.93%
56 1-Oct-04 21.59 1130.20 10.39% 1.39%
57 1-Nov-04 21.74 1173.82 0.69% 3.79%
58 1-Dec-04 22.73 1211.92 4.45% 3.19%
59 3-Jan-05 21.81 1181.27 -4.13% -2.56%
60 1-Feb-05 23.39 1203.60 6.99% 1.87%
61 1-Mar-05 22.65 1180.59 -3.21% -1.93%
62 1-Apr-05 22.93 1156.85 1.23% -2.03%
63 2-May-05 26.38 1191.50 14.02% 2.95%
64 1-Jun-05 25.46 1191.33 -3.55% -0.01%
65 1-Jul-05 26.55 1234.18 4.19% 3.53%
66 1-Aug-05 25.24 1220.33 -5.06% -1.13%
67 1-Sep-05 24.19 1228.81 -4.25% 0.69%
68 3-Oct-05 23.06 1207.01 -4.78% -1.79%
69 1-Nov-05 26.27 1249.48 13.03% 3.46%
70 1-Dec-05 24.57 1248.29 -6.69% -0.10%
71 3-Jan-06 25.90 1285.45 5.27% 2.93%
I J K L
2
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12 #VALUE!
13 Slope Intercept
14 Slope --> 2.2516 -0.0029 <-- Intercept
15 Standard error of slope --> 0.2782 0.0120 <-- Standard error of intercept
16 R-squared --> 0.5304 0.0927 <-- Standard error of y values
17 F statistic --> 65.5155 58.0000 <-- Degrees of freedom
18 SSxy --> 0.5627 0.4982 <-- SSE = Residual sum of squares
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A B C D E F G
1
COMPUTING BETA FOR INTEL
Monthly returns for Intel and S&P500, 2001-2006
3 Beta 2.2516 #VALUE!
5 t for alpha #VALUE! #VALUE!
6 t for beta #VALUE! #VALUE!
7
8 Prices Returns
10 9-Jan-01 35.38 1366.01
11 1-Feb-01 27.32 1239.94 -0.2585 -0.0968 #VALUE!
12 1-Mar-01 25.17 1160.33 -0.0820 -0.0664 #VALUE!
13 2-Apr-01 29.57 1249.46 0.1611 0.0740 #VALUE!
14 1-May-01 25.86 1255.82 -0.1341 0.0051
15 1-Jun-01 28.00 1224.38 0.0795 -0.0254
16 2-Jul-01 28.54 1211.23 0.0191 -0.0108
65 1-Aug-05 25.24 1220.33 -0.0506 -0.0113
66 1-Sep-05 24.19 1228.81 -0.0425 0.0069
67 3-Oct-05 23.06 1207.01 -0.0478 -0.0179
68 1-Nov-05 26.27 1249.48 0.1303 0.0346
69 1-Dec-05 24.57 1248.29 -0.0669 -0.0010
70 3-Jan-06 25.90 1285.45 0.0527 0.0293
71
72
73 SUMMARY OUTPUT
74
75 Regression Statistics
76 Multiple R 0.7283
77 R Square 0.5304
78 Adjusted R Square 0.5223
79 Standard Error 0.0927
80 Observations 60
81
82 ANOVA
83 df SS MS F Significance F
84 Regression 1 0.5627 0.5627 65.5155 0.0000
85 Residual 58 0.4982 0.0086
86 Total 59 1.0609
87
88 Coefficients
Standard Error t Stat P-value Lower 95% Upper 95%
89 Intercept -0.0029 0.0120 -0.2438 0.8083 -0.0269 0.0210
90 X Variable 1 2.2516 0.2782 8.0942 0.0000 1.6948 2.8084
H I J K L M
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9 Regression screen:
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88 Lower 95.0% Upper 95.0%
89 -0.0269 0.0210
90 1.6948 2.8084
A B C
COMPUTING THE COST OF EQUITY FOR INTEL

1
Classic CAPM: rE = rf + b*[ E(rM)-rf ]
2 Intel beta 2.2516
3 Risk free rate, rf 4.93%
4 Expected market return, E(rM) 9.98%
5 Intel cost of equity, rE,Intel 16.31% #VALUE!
COMPUTING INTEL'S TAX RATE
INTEL CORP 10-K 2005-12-31: Income Statement
2005/12/31 2004/12/31
Net revenue $38,826,000,000 $34,209,000,000
Cost of sales $15,777,000,000 $14,463,000,000
Gross margin $23,049,000,000 $19,746,000,000
Research and development $5,145,000,000 $4,778,000,000
Marketing, general and administrative $5,688,000,000 $4,659,000,000
Impairment of goodwill $0 $0
Amortization and impairment of acquisition-related $126,000,000 $179,000,000
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, assumi $6,178,000,000 $6,494,000,000
dilution
Tax rate 31.29% 27.85%
This data was extracted by EdgarScan from the PricewaterhouseCoopers Global Technology 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
A B C
COMPUTING THE COST OF EQUITY FOR INTEL

1
Tax-adjusted CAPM: rE = rf (1-TC) + b*[ E(rM)-rf (1-TC) ]
2 Intel beta 2.2516
3 Intel tax rate, TC 31.29% <-- Computed from Intel financials
6 Intel cost of equity, rE,Intel 18.24% #VALUE!
A B C D
MEASURING E(rM) USING HISTORICAL DATA

1 Derived from prices for the Vanguard 500 Index Fund
(symbol: VFINX)
These prices include dividends; April 1987 - August 2006
2 Average monthly return 0.83% #VALUE!
3 Monthly standard deviation 4.34% #VALUE!
4
5 Annualized return 9.98% #VALUE!
6 Annualized standard deviation 15.05% #VALUE!
7
8 Date Price Return
9 1-Apr-87 17.32
10 1-May-87 17.49 0.98% #VALUE!
11 1-Jun-87 18.37 4.91% #VALUE!
12 1-Jul-87 19.28 4.83% #VALUE!
13 3-Aug-87 20.02 3.77% #VALUE!
14 1-Sep-87 19.56 -2.32%
15 1-Oct-87 15.31 -24.50%
16 2-Nov-87 14.06 -8.52%
17 1-Dec-87 15.12 7.27%
18 4-Jan-88 15.75 4.08%
19 1-Feb-88 16.48 4.53%
20 1-Mar-88 15.98 -3.08%
21 4-Apr-88 16.14 1.00%
22 2-May-88 16.27 0.80%
23 1-Jun-88 17.01 4.45%
24 1-Jul-88 16.95 -0.35%
25 1-Aug-88 16.37 -3.48%
26 1-Sep-88 17.07 4.19%
27 3-Oct-88 17.54 2.72%
28 1-Nov-88 17.28 -1.49%
29 1-Dec-88 17.58 1.72%
30 3-Jan-89 18.87 7.08%
31 1-Feb-89 18.40 -2.52%
32 1-Mar-89 18.82 2.26%
33 3-Apr-89 19.80 5.08%
34 1-May-89 20.60 3.96%
35 1-Jun-89 20.47 -0.63%
36 3-Jul-89 22.32 8.65%
37 1-Aug-89 22.73 1.82%
38 1-Sep-89 22.64 -0.40%
39 2-Oct-89 22.11 -2.37%
40 1-Nov-89 22.56 2.01%
41 1-Dec-89 23.10 2.37%
42 2-Jan-90 21.55 -6.95%
43 1-Feb-90 21.83 1.29%
44 1-Mar-90 22.40 2.58%
A B C D
45 2-Apr-90 21.84 -2.53%
46 1-May-90 23.95 9.22%
47 1-Jun-90 23.79 -0.67%
48 2-Jul-90 23.71 -0.34%
49 1-Aug-90 21.57 -9.46%
50 4-Sep-90 20.51 -5.04%
51 1-Oct-90 20.43 -0.39%
52 1-Nov-90 21.74 6.21%
53 3-Dec-90 22.33 2.68%
54 2-Jan-91 23.30 4.25%
55 1-Feb-91 24.96 6.88%
56 1-Mar-91 25.56 2.38%
57 1-Apr-91 25.61 0.20%
58 1-May-91 26.70 4.17%
59 3-Jun-91 25.49 -4.64%
60 1-Jul-91 26.67 4.53%
61 1-Aug-91 27.29 2.30%
62 3-Sep-91 26.83 -1.70%
63 1-Oct-91 27.19 1.33%
64 1-Nov-91 26.10 -4.09%
65 2-Dec-91 29.07 10.78%
66 2-Jan-92 28.53 -1.88%
67 3-Feb-92 28.89 1.25%
68 2-Mar-92 28.33 -1.96%
69 1-Apr-92 29.16 2.89%
70 1-May-92 29.30 0.48%
71 1-Jun-92 28.86 -1.51%
72 1-Jul-92 30.03 3.97%
73 3-Aug-92 29.41 -2.09%
74 1-Sep-92 29.75 1.15%
75 1-Oct-92 29.85 0.34%
76 2-Nov-92 30.87 3.36%
77 1-Dec-92 31.46 1.89%
78 4-Jan-93 31.49 0.10%
79 1-Feb-93 31.92 1.36%
80 1-Mar-93 32.59 2.08%
81 1-Apr-93 31.80 -2.45%
82 3-May-93 32.64 2.61%
83 1-Jun-93 32.73 0.28%
84 1-Jul-93 32.59 -0.43%
85 2-Aug-93 33.82 3.70%
86 1-Sep-93 33.56 -0.77%
87 1-Oct-93 34.25 2.04%
88 1-Nov-93 33.91 -1.00%
89 1-Dec-93 34.33 1.23%
90 3-Jan-94 35.49 3.32%
91 1-Feb-94 34.52 -2.77%
92 1-Mar-94 33.01 -4.47%
93 4-Apr-94 33.44 1.29%
A B C D
94 2-May-94 33.97 1.57%
95 1-Jun-94 33.14 -2.47%
96 1-Jul-94 34.23 3.24%
97 1-Aug-94 35.62 3.98%
98 1-Sep-94 34.75 -2.47%
99 3-Oct-94 35.53 2.22%
100 1-Nov-94 34.23 -3.73%
101 1-Dec-94 34.73 1.45%
102 3-Jan-95 35.63 2.56%
103 1-Feb-95 37.01 3.80%
104 1-Mar-95 38.10 2.90%
105 3-Apr-95 39.22 2.90%
106 1-May-95 40.78 3.90%
107 1-Jun-95 41.72 2.28%
108 3-Jul-95 43.10 3.25%
109 1-Aug-95 43.21 0.25%
110 1-Sep-95 45.03 4.13%
111 2-Oct-95 44.87 -0.36%
112 1-Nov-95 46.83 4.28%
113 1-Dec-95 47.74 1.92%
114 2-Jan-96 49.35 3.32%
115 1-Feb-96 49.81 0.93%
116 1-Mar-96 50.30 0.98%
117 1-Apr-96 51.03 1.44%
118 1-May-96 52.33 2.52%
119 3-Jun-96 52.53 0.38%
120 1-Jul-96 50.21 -4.52%
121 1-Aug-96 51.26 2.07%
122 3-Sep-96 54.13 5.45%
123 1-Oct-96 55.62 2.72%
124 1-Nov-96 59.83 7.30%
125 2-Dec-96 58.65 -1.99%
126 2-Jan-97 62.31 6.05%
127 3-Feb-97 62.80 0.78%
128 3-Mar-97 60.20 -4.23%
129 1-Apr-97 63.79 5.79%
130 1-May-97 67.67 5.90%
131 2-Jun-97 70.68 4.35%
132 1-Jul-97 76.31 7.66%
133 1-Aug-97 72.03 -5.77%
134 2-Sep-97 75.97 5.33%
135 1-Oct-97 73.43 -3.40%
136 3-Nov-97 76.80 4.49%
137 1-Dec-97 78.11 1.69%
138 2-Jan-98 78.98 1.11%
139 2-Feb-98 84.66 6.94%
140 2-Mar-98 88.98 4.98%
141 1-Apr-98 89.88 1.01%
142 1-May-98 88.31 -1.76%
A B C D
143 1-Jun-98 91.91 4.00%
144 1-Jul-98 90.94 -1.06%
145 3-Aug-98 77.78 -15.63%
146 1-Sep-98 82.76 6.21%
147 1-Oct-98 89.52 7.85%
148 2-Nov-98 94.95 5.89%
149 1-Dec-98 100.47 5.65%
150 4-Jan-99 104.69 4.11%
151 1-Feb-99 101.42 -3.17%
152 1-Mar-99 105.47 3.92%
153 1-Apr-99 109.53 3.78%
154 3-May-99 106.91 -2.42%
155 1-Jun-99 112.85 5.41%
156 1-Jul-99 109.32 -3.18%
157 2-Aug-99 108.78 -0.50%
158 1-Sep-99 105.80 -2.78%
159 1-Oct-99 112.49 6.13%
160 1-Nov-99 114.77 2.01%
161 1-Dec-99 121.64 5.81%
162 3-Jan-00 115.52 -5.16%
163 1-Feb-00 113.32 -1.92%
164 1-Mar-00 124.38 9.31%
165 3-Apr-00 120.64 -3.05%
166 1-May-00 118.18 -2.06%
167 1-Jun-00 121.12 2.46%
168 3-Jul-00 119.31 -1.51%
169 1-Aug-00 126.70 6.01%
170 1-Sep-00 120.00 -5.43%
171 2-Oct-00 119.48 -0.43%
172 1-Nov-00 110.07 -8.20%
173 1-Dec-00 110.63 0.51%
174 2-Jan-01 114.55 3.48%
175 1-Feb-01 104.09 -9.58%
176 1-Mar-01 97.46 -6.58%
177 2-Apr-01 105.04 7.49%
178 1-May-01 105.72 0.65%
179 1-Jun-01 103.13 -2.48%
180 2-Jul-01 102.10 -1.00%
181 1-Aug-01 95.70 -6.47%
182 4-Sep-01 87.95 -8.44%
183 1-Oct-01 89.61 1.87%
184 1-Nov-01 96.47 7.38%
185 3-Dec-01 97.32 0.88%
186 2-Jan-02 95.88 -1.49%
187 1-Feb-02 94.03 -1.95%
188 1-Mar-02 97.55 3.68%
189 1-Apr-02 91.62 -6.27%
190 1-May-02 90.93 -0.76%
191 3-Jun-02 84.44 -7.40%
A B C D
192 1-Jul-02 77.92 -8.04%
193 1-Aug-02 78.43 0.65%
194 3-Sep-02 69.89 -11.53%
195 1-Oct-02 76.03 8.42%
196 1-Nov-02 80.71 5.97%
197 2-Dec-02 75.74 -6.36%
198 2-Jan-03 73.76 -2.65%
199 3-Feb-03 72.64 -1.53%
200 3-Mar-03 73.33 0.95%
201 1-Apr-03 79.38 7.93%
202 1-May-03 83.56 5.13%
203 2-Jun-03 84.61 1.25%
204 1-Jul-03 86.09 1.73%
205 1-Aug-03 87.75 1.91%
206 2-Sep-03 86.81 -1.08%
207 1-Oct-03 91.71 5.49%
208 3-Nov-03 92.50 0.86%
209 1-Dec-03 97.33 5.09%
210 2-Jan-04 99.10 1.80%
211 2-Feb-04 100.47 1.37%
212 1-Mar-04 98.95 -1.52%
213 1-Apr-04 97.39 -1.59%
214 3-May-04 98.71 1.35%
215 1-Jun-04 100.61 1.91%
216 1-Jul-04 97.28 -3.37%
217 2-Aug-04 97.65 0.38%
218 1-Sep-04 98.69 1.06%
219 1-Oct-04 100.19 1.51%
220 1-Nov-04 104.24 3.96%
221 1-Dec-04 107.78 3.34%
222 3-Jan-05 105.14 -2.48%
223 1-Feb-05 107.34 2.07%
224 1-Mar-05 105.45 -1.78%
225 1-Apr-05 103.43 -1.93%
226 2-May-05 106.71 3.12%
227 1-Jun-05 106.84 0.12%
228 1-Jul-05 110.80 3.64%
229 1-Aug-05 109.79 -0.92%
230 1-Sep-05 110.66 0.79%
231 3-Oct-05 108.80 -1.70%
232 1-Nov-05 112.90 3.70%
233 1-Dec-05 112.92 0.02%
234 3-Jan-06 115.91 2.61%
235 1-Feb-06 116.21 0.26%
236 1-Mar-06 117.65 1.23%
237 3-Apr-06 119.22 1.33%
238 1-May-06 115.76 -2.95%
239 1-Jun-06 115.91 0.13%
240 3-Jul-06 116.61 0.60%
A B C D
241 1-Aug-06 119.37 2.34%
A B C D E
MEASURING THE MARKET RISK PREMIUM E(rM) - rf USING HISTORICA

1 Vanguard 500 Index Fund (symbol: VFINX) minus Treasury Bills
April 1987 - August 2006
All measurements relate to monthly returns on SP500, r Mt, and the Treasury bill
2 Average monthly risk premium 0.46% #VALUE!
3 Monthly standard deviation 4.34% #VALUE!
4
5 Annualized risk premium 5.50% #VALUE!
6 Annualized standard deviation 15.04% #VALUE!
7
Market
Treasury
8 risk
bill rate
Date Price Return premium
9 1-Apr-87 17.32
10 1-May-87 17.49 0.98% 0.47% 0.51%
11 1-Jun-87 18.37 4.91% 0.47% 4.44%
12 1-Jul-87 19.28 4.83% 0.47% 4.36%
13 3-Aug-87 20.02 3.77% 0.47% 3.29%
14 1-Sep-87 19.56 -2.32% 0.50% -2.83%
15 1-Oct-87 15.31 -24.50% 0.53% -25.03%
16 2-Nov-87 14.06 -8.52% 0.51% -9.03%
17 1-Dec-87 15.12 7.27% 0.47% 6.79%
18 4-Jan-88 15.75 4.08% 0.48% 3.60%
19 1-Feb-88 16.48 4.53% 0.48% 4.05%
20 1-Mar-88 15.98 -3.08% 0.47% -3.55%
21 4-Apr-88 16.14 1.00% 0.48% 0.52%
22 2-May-88 16.27 0.80% 0.49% 0.31%
23 1-Jun-88 17.01 4.45% 0.52% 3.93%
24 1-Jul-88 16.95 -0.35% 0.54% -0.89%
25 1-Aug-88 16.37 -3.48% 0.56% -4.04%
26 1-Sep-88 17.07 4.19% 0.59% 3.60%
27 3-Oct-88 17.54 2.72% 0.60% 2.11%
28 1-Nov-88 17.28 -1.49% 0.61% -2.11%
29 1-Dec-88 17.58 1.72% 0.65% 1.07%
30 3-Jan-89 18.87 7.08% 0.67% 6.41%
31 1-Feb-89 18.4 -2.52% 0.69% -3.21%
32 1-Mar-89 18.82 2.26% 0.71% 1.55%
33 3-Apr-89 19.8 5.08% 0.74% 4.34%
34 1-May-89 20.6 3.96% 0.72% 3.24%
35 1-Jun-89 20.47 -0.63% 0.70% -1.34%
36 3-Jul-89 22.32 8.65% 0.68% 7.97%
37 1-Aug-89 22.73 1.82% 0.66% 1.16%
38 1-Sep-89 22.64 -0.40% 0.66% -1.06%
39 2-Oct-89 22.11 -2.37% 0.65% -3.01%
40 1-Nov-89 22.56 2.01% 0.64% 1.38%
41 1-Dec-89 23.1 2.37% 0.64% 1.72%
42 2-Jan-90 21.55 -6.95% 0.64% -7.58%
A B C D E
43 1-Feb-90 21.83 1.29% 0.64% 0.65%
44 1-Mar-90 22.4 2.58% 0.65% 1.93%
45 2-Apr-90 21.84 -2.53% 0.66% -3.19%
46 1-May-90 23.95 9.22% 0.65% 8.58%
47 1-Jun-90 23.79 -0.67% 0.65% -1.32%
48 2-Jul-90 23.71 -0.34% 0.64% -0.98%
49 1-Aug-90 21.57 -9.46% 0.64% -10.09%
50 4-Sep-90 20.51 -5.04% 0.62% -5.66%
51 1-Oct-90 20.43 -0.39% 0.61% -1.00%
52 1-Nov-90 21.74 6.21% 0.60% 5.62%
53 3-Dec-90 22.33 2.68% 0.59% 2.09%
54 2-Jan-91 23.3 4.25% 0.56% 3.69%
55 1-Feb-91 24.96 6.88% 0.52% 6.36%
56 1-Mar-91 25.56 2.38% 0.50% 1.88%
57 1-Apr-91 25.61 0.20% 0.49% -0.30%
58 1-May-91 26.7 4.17% 0.47% 3.70%
59 3-Jun-91 25.49 -4.64% 0.46% -5.09%
60 1-Jul-91 26.67 4.53% 0.46% 4.06%
61 1-Aug-91 27.29 2.30% 0.47% 1.83%
62 3-Sep-91 26.83 -1.70% 0.44% -2.14%
63 1-Oct-91 27.19 1.33% 0.44% 0.90%
64 1-Nov-91 26.1 -4.09% 0.42% -4.51%
65 2-Dec-91 29.07 10.78% 0.38% 10.40%
66 2-Jan-92 28.53 -1.88% 0.34% -2.21%
67 3-Feb-92 28.89 1.25% 0.32% 0.94%
68 2-Mar-92 28.33 -1.96% 0.32% -2.28%
69 1-Apr-92 29.16 2.89% 0.34% 2.55%
70 1-May-92 29.3 0.48% 0.31% 0.17%
71 1-Jun-92 28.86 -1.51% 0.30% -1.82%
72 1-Jul-92 30.03 3.97% 0.31% 3.67%
73 3-Aug-92 29.41 -2.09% 0.27% -2.35%
74 1-Sep-92 29.75 1.15% 0.26% 0.89%
75 1-Oct-92 29.85 0.34% 0.24% 0.09%
76 2-Nov-92 30.87 3.36% 0.24% 3.12%
77 1-Dec-92 31.46 1.89% 0.26% 1.63%
78 4-Jan-93 31.49 0.10% 0.27% -0.17%
79 1-Feb-93 31.92 1.36% 0.25% 1.11%
80 1-Mar-93 32.59 2.08% 0.24% 1.83%
81 1-Apr-93 31.8 -2.45% 0.25% -2.70%
82 3-May-93 32.64 2.61% 0.24% 2.37%
83 1-Jun-93 32.73 0.28% 0.25% 0.03%
84 1-Jul-93 32.59 -0.43% 0.26% -0.68%
85 2-Aug-93 33.82 3.70% 0.25% 3.45%
86 1-Sep-93 33.56 -0.77% 0.25% -1.02%
87 1-Oct-93 34.25 2.04% 0.25% 1.79%
88 1-Nov-93 33.91 -1.00% 0.25% -1.25%
89 1-Dec-93 34.33 1.23% 0.26% 0.97%
90 3-Jan-94 35.49 3.32% 0.26% 3.07%
91 1-Feb-94 34.52 -2.77% 0.25% -3.02%
A B C D E
92 1-Mar-94 33.01 -4.47% 0.27% -4.74%
93 4-Apr-94 33.44 1.29% 0.29% 1.00%
94 2-May-94 33.97 1.57% 0.31% 1.27%
95 1-Jun-94 33.14 -2.47% 0.35% -2.82%
96 1-Jul-94 34.23 3.24% 0.35% 2.89%
97 1-Aug-94 35.62 3.98% 0.36% 3.62%
98 1-Sep-94 34.75 -2.47% 0.37% -2.85%
99 3-Oct-94 35.53 2.22% 0.39% 1.83%
100 1-Nov-94 34.23 -3.73% 0.41% -4.14%
101 1-Dec-94 34.73 1.45% 0.44% 1.01%
102 3-Jan-95 35.63 2.56% 0.47% 2.09%
103 1-Feb-95 37.01 3.80% 0.48% 3.32%
104 1-Mar-95 38.1 2.90% 0.48% 2.42%
105 3-Apr-95 39.22 2.90% 0.48% 2.42%
106 1-May-95 40.78 3.90% 0.47% 3.43%
107 1-Jun-95 41.72 2.28% 0.47% 1.81%
108 3-Jul-95 43.1 3.25% 0.46% 2.80%
109 1-Aug-95 43.21 0.25% 0.45% -0.20%
110 1-Sep-95 45.03 4.13% 0.45% 3.68%
111 2-Oct-95 44.87 -0.36% 0.44% -0.80%
112 1-Nov-95 46.83 4.28% 0.44% 3.84%
113 1-Dec-95 47.74 1.92% 0.45% 1.48%
114 2-Jan-96 49.35 3.32% 0.43% 2.89%
115 1-Feb-96 49.81 0.93% 0.42% 0.51%
116 1-Mar-96 50.3 0.98% 0.40% 0.58%
117 1-Apr-96 51.03 1.44% 0.41% 1.03%
118 1-May-96 52.33 2.52% 0.41% 2.10%
119 3-Jun-96 52.53 0.38% 0.42% -0.04%
120 1-Jul-96 50.21 -4.52% 0.42% -4.94%
121 1-Aug-96 51.26 2.07% 0.43% 1.64%
122 3-Sep-96 54.13 5.45% 0.42% 5.03%
123 1-Oct-96 55.62 2.72% 0.42% 2.29%
124 1-Nov-96 59.83 7.30% 0.42% 6.88%
125 2-Dec-96 58.65 -1.99% 0.42% -2.41%
126 2-Jan-97 62.31 6.05% 0.41% 5.64%
127 3-Feb-97 62.8 0.78% 0.42% 0.36%
128 3-Mar-97 60.2 -4.23% 0.42% -4.65%
129 1-Apr-97 63.79 5.79% 0.43% 5.36%
130 1-May-97 67.67 5.90% 0.43% 5.47%
131 2-Jun-97 70.68 4.35% 0.42% 3.93%
132 1-Jul-97 76.31 7.66% 0.41% 7.25%
133 1-Aug-97 72.03 -5.77% 0.42% -6.19%
134 2-Sep-97 75.97 5.33% 0.43% 4.90%
135 1-Oct-97 73.43 -3.40% 0.41% -3.81%
136 3-Nov-97 76.8 4.49% 0.41% 4.07%
137 1-Dec-97 78.11 1.69% 0.43% 1.26%
138 2-Jan-98 78.98 1.11% 0.43% 0.68%
139 2-Feb-98 84.66 6.94% 0.42% 6.52%
140 2-Mar-98 88.98 4.98% 0.42% 4.55%
A B C D E
141 1-Apr-98 89.88 1.01% 0.42% 0.59%
142 1-May-98 88.31 -1.76% 0.41% -2.17%
143 1-Jun-98 91.91 4.00% 0.42% 3.58%
144 1-Jul-98 90.94 -1.06% 0.42% -1.48%
145 3-Aug-98 77.78 -15.63% 0.41% -16.04%
146 1-Sep-98 82.76 6.21% 0.41% 5.80%
147 1-Oct-98 89.52 7.85% 0.38% 7.47%
148 2-Nov-98 94.95 5.89% 0.33% 5.56%
149 1-Dec-98 100.47 5.65% 0.37% 5.28%
150 4-Jan-99 104.69 4.11% 0.37% 3.75%
151 1-Feb-99 101.42 -3.17% 0.36% -3.53%
152 1-Mar-99 105.47 3.92% 0.37% 3.55%
153 1-Apr-99 109.53 3.78% 0.37% 3.41%
154 3-May-99 106.91 -2.42% 0.36% -2.78%
155 1-Jun-99 112.85 5.41% 0.38% 5.03%
156 1-Jul-99 109.32 -3.18% 0.38% -3.56%
157 2-Aug-99 108.78 -0.50% 0.38% -0.87%
158 1-Sep-99 105.8 -2.78% 0.39% -3.17%
159 1-Oct-99 112.49 6.13% 0.39% 5.74%
160 1-Nov-99 114.77 2.01% 0.41% 1.60%
161 1-Dec-99 121.64 5.81% 0.42% 5.39%
162 3-Jan-00 115.52 -5.16% 0.43% -5.60%
163 1-Feb-00 113.32 -1.92% 0.44% -2.37%
164 1-Mar-00 124.38 9.31% 0.46% 8.85%
165 3-Apr-00 120.64 -3.05% 0.47% -3.53%
166 1-May-00 118.18 -2.06% 0.47% -2.53%
167 1-Jun-00 121.12 2.46% 0.48% 1.97%
168 3-Jul-00 119.31 -1.51% 0.47% -1.98%
169 1-Aug-00 126.7 6.01% 0.50% 5.51%
170 1-Sep-00 120 -5.43% 0.51% -5.94%
171 2-Oct-00 119.48 -0.43% 0.50% -0.93%
172 1-Nov-00 110.07 -8.20% 0.51% -8.71%
173 1-Dec-00 110.63 0.51% 0.51% -0.01%
174 2-Jan-01 114.55 3.48% 0.48% 3.00%
175 1-Feb-01 104.09 -9.58% 0.43% -10.00%
176 1-Mar-01 97.46 -6.58% 0.41% -6.99%
177 2-Apr-01 105.04 7.49% 0.37% 7.12%
178 1-May-01 105.72 0.65% 0.32% 0.32%
179 1-Jun-01 103.13 -2.48% 0.30% -2.78%
180 2-Jul-01 102.1 -1.00% 0.29% -1.29%
181 1-Aug-01 95.7 -6.47% 0.29% -6.77%
182 4-Sep-01 87.95 -8.44% 0.28% -8.72%
183 1-Oct-01 89.61 1.87% 0.22% 1.65%
184 1-Nov-01 96.47 7.38% 0.18% 7.20%
185 3-Dec-01 97.32 0.88% 0.16% 0.72%
186 2-Jan-02 95.88 -1.49% 0.14% -1.63%
187 1-Feb-02 94.03 -1.95% 0.14% -2.09%
188 1-Mar-02 97.55 3.68% 0.14% 3.53%
189 1-Apr-02 91.62 -6.27% 0.15% -6.42%
A B C D E
190 1-May-02 90.93 -0.76% 0.14% -0.90%
191 3-Jun-02 84.44 -7.40% 0.14% -7.55%
192 1-Jul-02 77.92 -8.04% 0.14% -8.18%
193 1-Aug-02 78.43 0.65% 0.14% 0.51%
194 3-Sep-02 69.89 -11.53% 0.14% -11.66%
195 1-Oct-02 76.03 8.42% 0.14% 8.28%
196 1-Nov-02 80.71 5.97% 0.13% 5.84%
197 2-Dec-02 75.74 -6.36% 0.10% -6.46%
198 2-Jan-03 73.76 -2.65% 0.10% -2.75%
199 3-Feb-03 72.64 -1.53% 0.10% -1.63%
200 3-Mar-03 73.33 0.95% 0.10% 0.85%
201 1-Apr-03 79.38 7.93% 0.09% 7.83%
202 1-May-03 83.56 5.13% 0.09% 5.04%
203 2-Jun-03 84.61 1.25% 0.09% 1.16%
204 1-Jul-03 86.09 1.73% 0.08% 1.66%
205 1-Aug-03 87.75 1.91% 0.08% 1.83%
206 2-Sep-03 86.81 -1.08% 0.08% -1.16%
207 1-Oct-03 91.71 5.49% 0.08% 5.41%
208 3-Nov-03 92.5 0.86% 0.08% 0.78%
209 1-Dec-03 97.33 5.09% 0.08% 5.01%
210 2-Jan-04 99.1 1.80% 0.08% 1.73%
211 2-Feb-04 100.47 1.37% 0.07% 1.30%
212 1-Mar-04 98.95 -1.52% 0.08% -1.60%
213 1-Apr-04 97.39 -1.59% 0.08% -1.67%
214 3-May-04 98.71 1.35% 0.08% 1.27%
215 1-Jun-04 100.61 1.91% 0.09% 1.82%
216 1-Jul-04 97.28 -3.37% 0.11% -3.47%
217 2-Aug-04 97.65 0.38% 0.11% 0.27%
218 1-Sep-04 98.69 1.06% 0.12% 0.94%
219 1-Oct-04 100.19 1.51% 0.14% 1.37%
220 1-Nov-04 104.24 3.96% 0.15% 3.82%
221 1-Dec-04 107.78 3.34% 0.17% 3.17%
222 3-Jan-05 105.14 -2.48% 0.18% -2.66%
223 1-Feb-05 107.34 2.07% 0.19% 1.88%
224 1-Mar-05 105.45 -1.78% 0.21% -1.99%
225 1-Apr-05 103.43 -1.93% 0.23% -2.16%
226 2-May-05 106.71 3.12% 0.23% 2.89%
227 1-Jun-05 106.84 0.12% 0.24% -0.11%
228 1-Jul-05 110.8 3.64% 0.25% 3.39%
229 1-Aug-05 109.79 -0.92% 0.27% -1.18%
230 1-Sep-05 110.66 0.79% 0.29% 0.50%
231 3-Oct-05 108.8 -1.70% 0.29% -1.98%
232 1-Nov-05 112.9 3.70% 0.31% 3.39%
233 1-Dec-05 112.92 0.02% 0.32% -0.31%
234 3-Jan-06 115.91 2.61% 0.32% 2.29%
235 1-Feb-06 116.21 0.26% 0.35% -0.09%
236 1-Mar-06 117.65 1.23% 0.37% 0.86%
237 3-Apr-06 119.22 1.33% 0.38% 0.95%
238 1-May-06 115.76 -2.95% 0.38% -3.33%
A B C D E
239 1-Jun-06 115.91 0.13% 0.39% -0.26%
240 3-Jul-06 116.61 0.60% 0.40% 0.20%
241 1-Aug-06 119.37 2.34% 0.41% 1.93%
F
PREMIUM E(rM) - rf USING HISTORICAL DATA

d (symbol: VFINX)
1 minus Treasury Bills
1987 - August 2006
returns on SP500, r Mt, and the Treasury bill rate rft
2
Methodological note: I have used the St. Louis FRED
3 data for 3-month Treasury Bills; this data is annualized,
4 and I have divided it by 12 to get the monthly returns.
5 Since the data can be taken as an ex-ante return, the
6 April 1987 rate is attributed to May 1987.
7
I've use 3-month instead of 1-month, because there
are lots of data problems with the latter.
8
9
10 #VALUE!
11 #VALUE!
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
A B C
COMPUTING THE COST OF EQUITY FOR INTEL USING THE

1
MARKET RISK PREMIUM E(rM) - rf
2 Intel beta 2.2516
3 Historical market risk premium 5.50%
4 Intel tax rate, TC 31.29% <-- Computed from Intel financials
6 Intel cost of equity, rE,Intel
7 Classic CAPM 17.31% #VALUE!
8 Tax-adjusted CAPM 19.24% #VALUE!
9
Note: The tax-adjusted model in cell B8 uses the equivalence:

10 E(rM) - rf (1-TC) = E(rM) - rf + TC*rf
A B
COMPUTING THE COST OF EQUITY FOR INTEL USING THE MARKET

1
PRICE/EARNINGS MULTIPLE TO COMPUTE E(rM)
2 Market price/earnings multiple, August 2006 17
3 Equity cash flow payout ratio 50.00%
4 Anticipated growth of market equity cash flow 6.00%
6
7 Intel cost of equity calculations
8 Intel beta 2.2516
9 Intel tax rate, TC 31.29%
11 Intel cost of equity, rE,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
C
QUITY FOR INTEL USING THE MARKET

1
MULTIPLE TO COMPUTE E(rM)
2
3
4
5 #VALUE!
6
7
8
9 <-- Computed from Intel financials
10
11
12 #VALUE!
13 #VALUE!
14
15
tp://www.bullandbearwise.com
A B C
1 COMPUTING THE COST OF DEBT FOR KRAFT
2 2005/12/31 2004/12/31
3 Cash and cash equivalents 316,000,000 282,000,000
4
5 Short-term borrowings 805,000,000 1,818,000,000
6 Current portion of long-term debt 1,268,000,000 750,000,000
7 Due to Altria Group, Inc. and affiliates 652,000,000 227,000,000
8 Long-term debt 8,475,000,000 9,723,000,000
9
10 Interest and other debt expense, net 636,000,000 666,000,000
11
12 Net debt 10,884,000,000 12,236,000,000
13 Net interest cost 5.50%
14
15 Total debt 11,200,000,000 12,518,000,000
16 Cash paid:
17 Interest 679,000,000 633,000,000
18
19 Interest cost 5.73%
20
21
22
23
24
25
26
27 Note: Altria debt is priced at LIBOR (from financial statements)
D
DEBT FOR
1 KRAFT
2
3
4
5
6
7
8
9
10
11
12 #VALUE!
13 #VALUE!
14
15
16
17
18
19 #VALUE!
20
21
22
23
24
25
26
27
YAHOO: NON-CALLABLE BBB CORPORATE BONDS WITH MATURITY 0.5 -
11 August 2006
Type Issuer Price Coupon(%) Maturity YTM(%)

Corp PANHANDLE EASTN PIPE LINE CO 100.29 2.75 15-Mar-07 2.24%
Corp SAFEWAY INC 104.75 9.875 15-Mar-07 1.62%
Corp WEYERHAEUSER CO 102.35 6.125 15-Mar-07 2.03%
Corp CONSTELLATION ENERGY GROUP INC 102.35 6.35 1-Apr-07 2.53%
Corp PENNEY J C INC 103.1 7.6 1-Apr-07 2.56%
Corp MOHAWK INDS INC 102.61 6.5 15-Apr-07 2.50%
Corp PROGRESS ENERGY INC 102.26 6.05 15-Apr-07 2.59%
Corp AOL TIME WARNER INC 102.34 6.15 1-May-07 2.78%
Corp ARAMARK SVCS INC 102.77 7 1-May-07 3.01%
Corp BANK UTD CORP 104.32 8.875 1-May-07 2.67%
Corp COMCAST CABLE COMMUNICATIONS 103.96 8.375 1-May-07 2.68%
Corp STARWOOD HOTELS&RESORTS WRLDWD 103 7.375 1-May-07 3.05%
Corp VIACOM INC 101.9 5.625 1-May-07 2.89%
Corp REALTY INCOME CORP 103.41 7.75 6-May-07 2.94%
Corp CIGNA CORP 103.31 7.4 15-May-07 2.88%
Corp TELUS CORP 103.58 7.5 1-Jun-07 2.87%
Corp EOP OPER LTD PARTNERSHIP 102.98 6.763 15-Jun-07 3.08%
Corp POTASH CORP SASK INC 103.25 7.125 15-Jun-07 3.11%
Corp VORNADO RLTY TR 102.04 5.625 15-Jun-07 3.10%
Corp KENTUCKY POWER CO 102.06 5.5 1-Jul-07 3.08%
Corp AVALONBAY CMNTYS INC MTN BE 101.45 5 1-Aug-07 3.44%
Corp ARCHSTONE SMITH TR 101.62 5 15-Aug-07 3.33%
Corp BANK OKLA N A TULSA 103.54 7.125 15-Aug-07 3.48%
Corp LIBERTY PPTY LTD PARTNERSHIP 103.56 7.25 15-Aug-07 3.57%
Corp MASCO CORP 101.15 4.625 15-Aug-07 3.44%
Corp RAYTHEON CO 103.09 6.75 15-Aug-07 3.56%
Corp TIME WARNER COMPANIES INC 104.45 8.18 15-Aug-07 3.59%
Corp TANDY CORP 103.33 6.95 1-Sep-07 3.66%
Corp ICI WILMINGTON INC 103.27 7.05 15-Sep-07 3.92%
Corp PHH CORP INTERNOTES BOOK ENTRY 101.9 5.6 15-Sep-07 3.78%
Corp OCEAN ENERGY INC DEL 100.82 4.375 1-Oct-07 3.62%
Corp USA WASTE SVCS INC 103.58 7.125 1-Oct-07 3.83%
Corp CALENERGY INC 104.21 7.63 15-Oct-07 3.88%
Corp ENTERPRISE PRODS OPER LP 100.15 4 15-Oct-07 3.87%
Corp POTOMAC ELEC PWR CO 102.73 6.25 15-Oct-07 3.82%
Corp ROYAL CARIBBEAN CRUISES LTD 103.13 7 15-Oct-07 4.20%
Corp UNION PAC CORP 103.99 5.75 15-Oct-07 2.24%
Corp CVS CORP 100.01 3.875 1-Nov-07 3.87%
Corp ENSCO INTL INC 103.33 6.75 15-Nov-07 3.97%
Corp EOP OPER LTD PARTNERSHIP 104.56 7.75 15-Nov-07 3.96%
Corp MALLINCKRODT GROUP INC 103.1 6.5 15-Nov-07 3.92%
Corp MEDIAONE GROUP INC MTN BE 103.02 6.83 15-Nov-07 4.30%
Corp UNION CAMP CORP 103.04 6.5 15-Nov-07 3.97%
Corp PSEG FDG TR I 101.57 5.381 16-Nov-07 4.07%
Corp PLATINUM UNDERWRITERS FIN INC 102.17 6.371 16-Nov-07 4.55%
Corp GENERAL MLS INC 99.89 3.875 30-Nov-07 3.96%
Corp LILLY INDS INC 104.46 7.75 1-Dec-07 4.16%
Corp AMERICAN FINL GROUP INC OHIO 103.81 7.125 15-Dec-07 4.14%
Corp PENNEY JC INC MTN BE 102.92 6.5 15-Dec-07 4.21%
Corp PRECISION CASTPARTS CORP 103.64 6.75 15-Dec-07 3.91%
Corp NEWS AMER INC 103.56 6.625 9-Jan-08 3.97%
Corp CNA FINL CORP 103.02 6.45 15-Jan-08 4.22%
Corp CENTURY TEL ENTERPRISES INC 102.83 6.3 15-Jan-08 4.21%
Corp CLEAR CHANNEL COMMUNICATIONS 100.42 4.625 15-Jan-08 4.31%
Corp SARA LEE CORP MTN BE 102.38 6 15-Jan-08 4.24%
Corp TIME WARNER COMPANIES INC 104.42 7.48 15-Jan-08 4.22%
Corp AMERICAN STD INC 104.21 7.375 1-Feb-08 4.35%
Corp CONSUMERS ENERGY CO 102.98 6.375 1-Feb-08 4.24%
Corp UNION PAC CORP 103.52 6.625 1-Feb-08 4.11%
Corp ARAMARK SVCS INC 102.38 6.375 15-Feb-08 4.71%
Corp AVNET INC 107.51 9.75 15-Feb-08 4.50%
Corp DOMINION RES INC VA NEW 100.19 4.125 15-Feb-08 4.00%
Corp EOP OPER LTD PARTNERSHIP 103.55 6.75 15-Feb-08 4.27%
Corp IDEX CORP 103.42 6.875 15-Feb-08 4.48%
Corp LENFEST COMMUNICATIONS INC 104.77 7.625 15-Feb-08 4.30%
Corp MARSH & MCLENNAN COS INC 99.34 3.625 15-Feb-08 4.08%
Corp PEMEX PROJ FDG MASTER TR 106.23 8.5 15-Feb-08 4.16%
Corp TANGER PPTYS LTD PARTNERSHIP 106.63 9.125 15-Feb-08 4.49%
Corp HOSPITALITY PPTYS TR 103.96 7 1-Mar-08 4.31%
Corp KROGER CO 103.13 6.375 1-Mar-08 4.25%
Corp UNITED DOMINION RLTY TR MTNSBE 100.27 4.5 3-Mar-08 4.32%
Corp BECKMAN COULTER INC 104.68 7.45 4-Mar-08 4.29%
Corp ROYAL CARIBBEAN CRUISES LTD 103.5 6.75 15-Mar-08 4.43%
Corp GREATER BAY BANCORP 101.06 5.25 31-Mar-08 4.56%
Corp CAROLINA PWR & LT CO MTN BE 103.6 6.65 1-Apr-08 4.32%
Corp FORTUNE BRANDS INC 103.04 6.25 1-Apr-08 4.29%
Corp GOODRICH CORP 104.81 7.5 15-Apr-08 4.46%
Corp PROLOGIS 104.35 7.1 15-Apr-08 4.35%
Corp APPALACHIAN PWR CO 98.75 3.6 15-May-08 4.35%
Corp BERKLEY W R CORP 108.8 9.875 15-May-08 4.56%
Corp DOMINION RES INC VA NEW 102.21 5.687 15-May-08 4.37%
Corp MIDAMERICAN ENERGY HLDGS NEW 98.2 3.5 15-May-08 4.58%
Corp TRW INC SR MEDTERMNTS BK EN 103.28 6.3 15-May-08 4.32%
Corp DUKE RLTY LTD PARTNERSHIP 103.98 6.75 30-May-08 4.41%
Corp AAG HLDG INC 103.77 6.875 1-Jun-08 4.65%
Corp CENTERPOINT ENERGY INC 102.14 5.875 1-Jun-08 4.61%
Corp NORTHEAST UTILS 98.14 3.3 1-Jun-08 4.39%
Corp ARCHSTONE-SMITH OPER TR 97.26 3 15-Jun-08 4.58%
Corp SARA LEE CORP MTN BE 102.61 6.15 19-Jun-08 4.65%
Corp PHILIP MORRIS COS INC 105.5 7.65 1-Jul-08 4.55%
Corp CAPITAL ONE FINL CORP 104.69 7.125 1-Aug-08 4.59%
Corp COX COMMUNICATIONS INC NEW 103.27 6.4 1-Aug-08 4.63%
Corp MILLER BREWING CO 99.53 4.25 15-Aug-08 4.50%
Corp PENNEY J C INC 106 7.375 15-Aug-08 4.21%
Corp CONTINENTAL CABLEVISION INC 108.37 9 1-Sep-08 4.65%
Corp TIME WARNER ENTMT CO LP 105.12 7.25 1-Sep-08 4.59%
Corp BALT GAS & ELEC CO MTN BE BONY 102.24 5.78 1-Oct-08 4.66%
Corp CADBURY SCHWEPPES US FINANACE 98.66 3.875 1-Oct-08 4.55%
Corp COX COMMUNICATIONS INC NEW 98.17 3.875 1-Oct-08 4.79%
Corp TRIBUNE CO MTN BK MONT TR CO 101.08 5.5 6-Oct-08 4.96%
Corp MASCO CORP 102.07 5.75 15-Oct-08 4.73%
Corp RAYCHEM CORP DEL 105.11 7.2 15-Oct-08 4.68%
Corp UNIVISION COMMUNICATIONS INC 97.91 3.875 15-Oct-08 4.90%
Corp NEWS AMER HLDGS INC 105.5 7.375 17-Oct-08 4.67%
Corp CHANCELLOR MEDIA CORP LA 106.18 8 1-Nov-08 5.00%
Corp MAY DEPT STORES CO 102.61 5.95 1-Nov-08 4.69%
Corp UNION PAC CORP 105.55 7.25 1-Nov-08 4.57%
Corp WEYERHAEUSER CO 103.01 5.95 1-Nov-08 4.50%
Corp ALTRIA GROUP INC 101.96 5.625 4-Nov-08 4.68%
Corp COMCAST CABLE COMMUNICATIONS 103.31 6.2 15-Nov-08 4.63%
Corp SPRINT CAP CORP 103.2 6.125 15-Nov-08 4.61%
Corp TELECOM ITALIA CAP 98.55 4 15-Nov-08 4.69%
Corp WASTE MGMT INC DEL 103.98 6.5 15-Nov-08 4.61%
Corp HALLIBURTON CO MTN BE 102.12 5.625 1-Dec-08 4.64%
Corp LUBRIZOL CORP 102.14 5.875 1-Dec-08 4.87%
Corp TRIBUNE CO MTN BK MONT TR CO 101.26 5.67 8-Dec-08 5.08%
Corp CNA FINL CORP 103.79 6.6 15-Dec-08 4.85%
Corp EOP OPER LTD PARTNERSHIP EOP 98.2 4 15-Dec-08 4.82%
Corp OAKMONT ASSET TR 98.51 4.514 22-Dec-08 5.19%
Corp D R HORTON INC 100 5 15-Jan-09 5.00%
Corp EOP OPER LTD PARTNERSHIP 104.43 6.8 15-Jan-09 4.83%
Corp VALASSIS COMMUNICATIONS INC 103.38 6.625 15-Jan-09 5.12%
Corp D R HORTON INC 106.5 8 1-Feb-09 5.15%
Corp EOP OPER LTD PARTNERSHIP EOP 97.69 4.1 15-Feb-09 5.09%
Corp CONSUMERS ENERGY CO 100.05 4.8 17-Feb-09 4.78%
Corp BRITISH SKY BROADCASTING GROUP 104.77 6.875 23-Feb-09 4.84%
Corp LENNAR CORP 106 7.625 1-Mar-09 5.08%
Corp PPL CAP FDG INC 98.92 4.33 1-Mar-09 4.78%
Corp SOUTHWESTERN PUB SVC CO 103.55 6.2 1-Mar-09 4.70%
Corp BURLINGTON NORTHN SANTA FE CP 103.58 6.125 15-Mar-09 4.63%
Corp COLONIAL BK MONTGOMERY ALA 107.31 8 15-Mar-09 4.94%
Corp MACK-CALI RLTY L P 106.04 7.25 15-Mar-09 4.73%
Corp PSEG PWR LLC 97.58 3.75 1-Apr-09 4.74%
Corp PENNSYLVANIA ELEC CO 103.09 6.125 1-Apr-09 4.85%
Corp UNION CARBIDE CORP 102.99 6.7 1-Apr-09 5.46%
Corp AMERICAN FINL GROUP INC OHIO 105.64 7.125 15-Apr-09 4.84%
Corp DTE ENERGY CO 104.24 6.65 15-Apr-09 4.93%
Corp UNION PAC RES GROUP INC 106.02 7.3 15-Apr-09 4.86%
Corp NIPSCO CAP MKTS INC MTN BE 106.73 7.72 17-Apr-09 4.99%
Corp ASHLAND INC MTN BE 105.38 6.86 1-May-09 4.72%
Corp GENERAL AMERICAN TRANS CORP 104.7 6.75 1-May-09 4.87%
Corp SPIEKER PPTYS L P 105.94 7.25 1-May-09 4.88%
Corp SPRINT CAP CORP 103.97 6.375 1-May-09 4.79%
Corp CLEAR CHANNEL COMMUNICATIONS 97.78 4.25 15-May-09 5.13%
Corp SEMPRA ENERGY 99.84 4.75 15-May-09 4.81%
Corp GATX FINL CORP 109.44 8.875 1-Jun-09 5.19%
Corp MARSH & MCLENNAN COS INC 105.77 7.125 15-Jun-09 4.91%
Corp UNITED DOMINION REALTY TR INC 103.96 6.5 15-Jun-09 4.98%
Corp WILLAMETTE INDS INC MTN BE 104.17 6.45 18-Jun-09 4.86%
Corp BRITISH SKY BROADCASTING GROUP 108.86 8.2 15-Jul-09 4.89%
Corp MAY DEPT STORES CO 99.77 4.8 15-Jul-09 4.88%
Corp PUBLIC SERVICE CO COLO 105.28 6.875 15-Jul-09 4.91%
Corp PULTE HOMES INC 99.27 4.875 15-Jul-09 5.15%
Corp COX COMMUNICATIONS INC NEW 107.72 7.875 15-Aug-09 5.06%
Corp NEW PLAN EXCEL RLTY TR INC MTN 106.5 7.4 15-Sep-09 5.09%
Corp DUKE CAP CORP 107.23 7.5 1-Oct-09 4.97%
Corp ELECTRONIC DATA SYS CORP 105.95 7.125 15-Oct-09 5.06%
Corp CLEVELAND ELEC ILLUM CO 107.29 7.43 1-Nov-09 4.94%
Corp FEDERAL REALTY INVT TR 110.5 8.75 1-Dec-09 5.23%
Corp DOMINION RES INC 100.45 5.125 15-Dec-09 4.98%
Corp WELLPOINT INC 98.07 4.25 15-Dec-09 4.88%
Corp COMCAST CORP NEW 102.74 5.85 15-Jan-10 4.97%
Corp COX COMMUNICATIONS INC NEW 98.26 4.625 15-Jan-10 5.19%
Corp TELECOM ITALIA CAP 96.36 4 15-Jan-10 5.18%
Corp COX COMMUNICATIONS INC NEW 98.27 4.625 15-Jan-10 5.18%
Corp TELECOM ITALIA CAP 96.36 4 15-Jan-10 5.18%
Corp COLONIAL RLTY LTD PARTNERSHIP 98.89 4.75 1-Feb-10 5.10%
Corp IBP INC 108.09 7.95 1-Feb-10 5.36%
Corp KROGER CO 108.78 8.05 1-Feb-10 5.24%
Corp SAFECO CORP 99.65 4.875 1-Feb-10 4.99%
Corp AMERICAN STD INC 107.3 7.625 15-Feb-10 5.31%
Corp AIFUL CORPORATION 96.59 4.45 16-Feb-10 5.54%
Corp PENNEY J C CORP INC 109.17 8 1-Mar-10 5.14%
Corp SEMPRA ENERGY 109.33 7.95 1-Mar-10 5.04%
Corp NISSAN MTR ACCEP CORP 98.25 4.625 8-Mar-10 5.17%
Corp AMERICAN ELEC PWR INC 101.17 5.375 15-Mar-10 5.01%
Corp METROPOLITAN EDISON CO 97.95 4.45 15-Mar-10 5.08%
Corp NEWS AMER INC 99.26 4.75 15-Mar-10 4.98%
Corp RAYTHEON CO 105.22 6.55 15-Mar-10 4.94%
Corp SCOTTISH PWR PLC 99.39 4.91 15-Mar-10 5.10%
Corp INTL PAPER CO 96.67 4 1-Apr-10 5.01%
Corp WASHINGTON MUT INC 110.22 8.25 1-Apr-10 5.12%
Corp MACK-CALI RLTY L P 99.31 5.05 15-Apr-10 5.26%
Corp NEWELL RUBBERMAID INC 96.37 4 1-May-10 5.09%
Corp NORFOLK SOUTHERN CORP 112.21 8.625 15-May-10 5.01%
Corp PEPCO HOLDINGS INC 96.03 4 15-May-10 5.18%
Corp ROYAL CARIBBEAN CRUISES LTD 107.06 8 15-May-10 5.87%
Corp ENTERPRISE PRODS OPER LP 98.92 4.95 1-Jun-10 5.26%
Corp UNION PAC CORP 95.45 3.625 1-Jun-10 4.96%
Corp DOMINION RES INC VA NEW 110.11 8.125 15-Jun-10 5.18%
Corp EXELON CORP 98 4.45 15-Jun-10 5.03%
Corp NORTHERN BORDER PARTNERS L P 112.15 8.875 15-Jun-10 5.32%
Corp HARRAHS OPER INC 100.64 5.5 1-Jul-10 5.31%
Corp WILLIS NORTH AMER INC 99.49 5.125 15-Jul-10 5.27%
Corp EOP OPER LTD PARTNERSHIP 109.97 8.1 1-Aug-10 5.27%
Corp WASTE MGMT INC DEL 108.08 7.375 1-Aug-10 5.09%
Corp PENNSYLVANIA ELEC CO UNSEC MTN 108.45 7.77 2-Aug-10 5.37%
Corp TRIBUNE CO NEW 96.74 4.875 15-Aug-10 5.80%
Corp DUKE ENERGY FIELD SVCS LLC 109.57 7.875 16-Aug-10 5.19%
Corp SAFEWAY INC 98.63 4.95 16-Aug-10 5.33%
Corp SOVEREIGN BANCORP INC 98.83 4.8 1-Sep-10 5.12%
Corp CLEAR CHANNEL COMMUNICATIONS 106.57 7.65 15-Sep-10 5.82%
Corp CONAGRA FOODS INC 109.89 7.875 15-Sep-10 5.15%
Corp HEALTH CARE PPTY INVS INC MTN 98.23 4.875 15-Sep-10 5.36%
Corp MARSH & MCLENNAN COS INC 99.76 5.15 15-Sep-10 5.21%
Corp NUVEEN INVTS INC 99.03 5 15-Sep-10 5.27%
Corp PUBLIC SERVICE CO OKLA 98.89 4.85 15-Sep-10 5.16%
Corp MOLSON COORS CAP FIN 99.25 4.85 22-Sep-10 5.05%
Corp BERKLEY W R CORP 99.56 5.125 30-Sep-10 5.24%
Corp EOP OPER LTD PARTNERSHIP 97.77 4.65 1-Oct-10 5.26%
Corp ROYAL KPN NV 108.83 8 1-Oct-10 5.57%
Corp TELECOM ITALIA CAP 98.3 4.875 1-Oct-10 5.34%
Corp GTECH HLDGS CORP 98.13 4.75 15-Oct-10 5.25%
Corp HALLIBURTON CO 101.26 5.5 15-Oct-10 5.16%
Corp HALLIBURTON CO 101.78 5.5 15-Oct-10 5.02%
Corp CENTEX CORP 96.64 4.55 1-Nov-10 5.45%
Corp KINDER MORGAN ENERGY PARTNERS 107.46 7.5 1-Nov-10 5.49%
Corp MAY DEPT STORES CO 119.01 10.625 1-Nov-10 5.50%
Corp UNITRIN INC 97.98 4.875 1-Nov-10 5.42%
Corp COMCAST CORP NEW 101.14 5.45 15-Nov-10 5.15%
Corp NISOURCE FIN CORP 110.92 7.875 15-Nov-10 4.99%
Corp TEXAS EASTN TRANSMISSION CORP 107.86 7.3 1-Dec-10 5.23%
Corp XCEL ENERGY INC MINN 107.06 7 1-Dec-10 5.14%
Corp BURLINGTON NORTHN SANTA FE CP 107.87 7.125 15-Dec-10 5.08%
Corp DOMINION RES INC VA NEW 98.23 4.75 15-Dec-10 5.21%
Corp ISTAR FINL INC 102.61 6 15-Dec-10 5.32%
Corp RAYTHEON CO 103.82 6 15-Dec-10 5.00%
Corp VIRGINIA ELEC & PWR CO 97.56 4.5 15-Dec-10 5.13%
Corp KINDER MORGAN FINANCE CORP ULC 95.83 5.35 5-Jan-11 6.46%
Corp BOSTON SCIENTIFIC CORP 95.94 4.25 12-Jan-11 5.29%
Corp AGL CAP CORP 107.48 7.125 14-Jan-11 5.20%
Corp BRE PROPERTIES INC 108.54 7.45 15-Jan-11 5.26%
Corp FORTUNE BRANDS INC 99.56 5.125 15-Jan-11 5.24%
Corp RAYTHEON CO 99.3 4.85 15-Jan-11 5.03%
Corp RECKSON OPER PARTNERSHIP L P 98.41 5.15 15-Jan-11 5.56%
Corp WADDELL & REED FINL INC 100.43 5.6 15-Jan-11 5.49%
Corp WELLPOINT INC 99.57 5 15-Jan-11 5.11%
Corp COMCAST CABLE COMMUNICATIONS 106.08 6.75 30-Jan-11 5.20%
Corp SPRINT CAP CORP 108.95 7.625 30-Jan-11 5.34%
Corp CENTEX CORP 108.8 7.875 1-Feb-11 5.62%
Corp ROYAL CARIBBEAN CRUISES LTD 110.5 8.75 2-Feb-11 6.03%
Corp CARDINAL HEALTH INC 106.44 6.75 15-Feb-11 5.13%
Corp NORFOLK SOUTHERN CORP 106.76 6.75 15-Feb-11 5.05%
Corp VORNADO RLTY L P 101.11 5.6 15-Feb-11 5.32%
Corp RESIDENTIAL CAP CORP 100.42 6 22-Feb-11 5.89%
Corp SAFEWAY INC 104.16 6.5 1-Mar-11 5.45%
Corp NISSAN MTR ACCEP CORP 101.11 5.625 14-Mar-11 5.35%
Corp ALCAN INC 105.27 6.45 15-Mar-11 5.14%
Corp CSX CORP 106.3 6.75 15-Mar-11 5.18%
Corp CLEAR CHANNEL COMMUNICATIONS 101.18 6.25 15-Mar-11 5.95%
Corp COMCAST CORP NEW 101.05 5.5 15-Mar-11 5.24%
Corp COX COMMUNICATIONS INC NEW 104.6 6.75 15-Mar-11 5.60%
Corp KINDER MORGAN ENERGY PARTNERS 104.92 6.75 15-Mar-11 5.52%
Corp COLONIAL RLTY LTD PARTNERSHIP 97.94 4.8 1-Apr-11 5.31%
Corp FEDERATED DEPT STORES INC DEL 105.47 6.625 1-Apr-11 5.28%
Corp KELLOGG CO 106.23 6.6 1-Apr-11 5.07%
Corp KROGER CO 105.84 6.8 1-Apr-11 5.36%
Corp RYDER SYS MTN BE 98.64 5 1-Apr-11 5.33%
Corp AOL TIME WARNER INC 105.13 6.75 15-Apr-11 5.49%
Corp ONEOK INC NEW 106.64 7.125 15-Apr-11 5.49%
Corp TRICON GLOBAL RESTAURANTS 114.09 8.875 15-Apr-11 5.41%
Corp VIACOM INC 100.74 5.75 30-Apr-11 5.57%
Corp ANADARKO FIN CO 106.03 6.75 1-May-11 5.28%
Corp EXELON CORP 105.83 6.75 1-May-11 5.33%
Corp HEALTHCARE RLTY TR 110.51 8.125 1-May-11 5.55%
Corp PREMCOR REFNG GROUP INC 103.69 6.125 1-May-11 5.23%
Corp RYDER SYS MTN BE 102.41 5.95 2-May-11 5.36%
Corp CLEAR CHANNEL COMMUNICATIONS 93.69 4.4 15-May-11 5.94%
Corp PUBLIC SERVICE CO OKLA 97.67 4.7 15-May-11 5.26%
Corp VIACOM INC 105.21 6.625 15-May-11 5.36%
Corp BLACK & DECKER CORP 107.17 7.125 1-Jun-11 5.40%
Corp DTE ENERGY CO 106.78 7.05 1-Jun-11 5.42%
Corp MATTEL INC MTN BE 104.6 7.3 13-Jun-11 6.18%
Corp BOSTON SCIENTIFIC CORP 101.75 6 15-Jun-11 5.58%
Corp EXELON GENERATION CO LLC 106.95 6.95 15-Jun-11 5.30%
Corp WHIRLPOOL CORP 102.89 6.125 15-Jun-11 5.43%
Corp TELEFONICA EMISONES SA 102.72 5.984 20-Jun-11 5.34%
Corp SABMILLER PLC 104.06 6.2 1-Jul-11 5.24%
Corp QUEST DIAGNOSTICS INC 109.69 7.5 12-Jul-11 5.23%
Corp ALLIED CAP CORP NEW 102.61 6.625 15-Jul-11 6.00%
Corp BURLINGTON NORTHN SANTA FE CP 107.1 6.75 15-Jul-11 5.10%
Corp EOP OPER LTD PARTNERSHIP 106.81 7 15-Jul-11 5.40%
Corp HEINZ H J FIN CO 105.66 6.625 15-Jul-11 5.30%
Corp LAFARGE COPPEE S A 102.97 6.15 15-Jul-11 5.45%
Corp PULTE HOMES INC 108.88 7.875 1-Aug-11 5.79%
Corp CNA FINL CORP 102.17 6 15-Aug-11 5.50%
Corp FIDELITY NATL FINL INC 104.05 7.3 15-Aug-11 6.34%
Corp REPUBLIC SVCS INC 106.39 6.75 15-Aug-11 5.28%
Corp CONAGRA FOODS INC 106.31 6.75 15-Sep-11 5.32%
Corp MAY DEPT STORES CO 108 7.45 15-Sep-11 5.62%
Corp SARA LEE CORP 103.04 6.25 15-Sep-11 5.55%
Corp DEVON FING CORP U L C 107.34 6.875 30-Sep-11 5.22%
Corp TYSON FOODS INC 108.8 8.25 1-Oct-11 6.22%
Corp TYCO INTL GROUP S A 105.61 6.375 15-Oct-11 5.12%
Corp CONSOLIDATED NAT GAS CO 103.77 6.25 1-Nov-11 5.41%
Corp PPL ENERGY SUPPLY LLC 104.64 6.4 1-Nov-11 5.36%
Corp FIRSTENERGY CORP 104.95 6.45 15-Nov-11 5.35%
Corp COVENTRY HEALTH CARE INC 99.86 5.875 15-Jan-12 5.91%
Corp WELLPOINT HEALTH NETWORK NEW 104.87 6.375 15-Jan-12 5.33%
Corp EOP OPER LTD PARTNERSHIP 106.38 6.75 15-Feb-12 5.39%
Corp TEPPCO PARTNERS L P 108.03 7.625 15-Feb-12 5.89%
Corp CRH AMER INC 106.4 6.95 15-Mar-12 5.60%
Corp CLEAR CHANNEL COMMUNICATIONS 94.29 5 15-Mar-12 6.23%
Corp HEINZ H J FIN CO 102.43 6 15-Mar-12 5.49%
Corp JEFFERIES GROUP INC NEW 110.29 7.75 15-Mar-12 5.58%
Corp KINDER MORGAN ENERGY PARTNERS 106.26 7.125 15-Mar-12 5.79%
Corp MARSH & MCLENNAN COS INC 102.65 6.25 15-Mar-12 5.69%
Corp SPRINT CAP CORP 113.02 8.375 15-Mar-12 5.62%
Corp WEYERHAEUSER CO 105.51 6.75 15-Mar-12 5.59%
Corp MEADWESTVACO CORP 105.65 6.85 1-Apr-12 5.66%
Corp PROLOGIS 100.34 5.5 1-Apr-12 5.43%
Corp KROGER CO 105.65 6.75 15-Apr-12 5.57%
Corp UNION PAC CORP 106.35 6.5 15-Apr-12 5.19%
Corp VALERO ENERGY CORP NEW 107.17 6.875 15-Apr-12 5.39%
Corp AOL TIME WARNER INC 105.71 6.875 1-May-12 5.69%
Corp STARWOOD HOTELS&RESORTS WRLDWD 109 7.875 1-May-12 5.99%
Corp ARAMARK CORP 88.5 5 1-Jun-12 7.48%
Corp PSEG PWR LLC 107.03 6.95 1-Jun-12 5.51%
Corp KENNAMETAL INC 107.32 7.2 15-Jun-12 5.70%
Corp HEALTH CARE PPTY INVS INC 104.07 6.45 25-Jun-12 5.62%
Corp DOMINION RES INC VA NEW 103.86 6.25 30-Jun-12 5.47%
Corp NEXFOR INC 108.11 7.25 1-Jul-12 5.61%
Corp MAY DEPT STORES CO 111.78 8 15-Jul-12 5.63%
Corp CONTINENTAL CORP 109.71 8.375 15-Aug-12 6.40%
Corp PEPCO HOLDINGS INC 104.2 6.45 15-Aug-12 5.62%
Corp VIACOM INC 100.47 5.625 15-Aug-12 5.53%
Corp KINDER MORGAN INC 98.52 6.5 1-Sep-12 6.80%
Corp SAFECO CORP 107 7.25 1-Sep-12 5.86%
Corp ALCAN INC 97.28 4.875 15-Sep-12 5.41%
Corp AMERISOURCEBERGEN CORP 99.08 5.625 15-Sep-12 5.81%
Corp CINCINNATI GAS & ELEC CO 101.45 5.7 15-Sep-12 5.42%
Corp MIDAMERICAN ENERGY HLDGS NEW 103.01 5.875 1-Oct-12 5.29%
Corp STANCORP FINL GROUP INC 107.21 6.875 1-Oct-12 5.47%
Corp ASTORIA FINL CORP 101.39 5.75 15-Oct-12 5.48%
Corp DEVELOPERS DIVERSIFIED RLTY CO 99.52 5.375 15-Oct-12 5.47%
Corp PLAINS ALL AMERN PIPELINE L P 111.18 7.75 15-Oct-12 5.58%
Corp INTL PAPER CO 102.39 5.85 30-Oct-12 5.39%
Corp CENDANT CORP 106 7.375 15-Jan-13 6.22%
Corp TIME WARNER COMPANIES INC 115.84 9.125 15-Jan-13 6.10%
Corp USA INTERACTIVE 103.3 7 15-Jan-13 6.36%
Corp SEMPRA ENERGY 102.64 6 1-Feb-13 5.51%
Corp AEP TEX CENT CO 99.82 5.5 15-Feb-13 5.53%
Corp BERKLEY W R CORP 101.87 5.875 15-Feb-13 5.53%
Corp DUKE CAP CORP 102.92 6.25 15-Feb-13 5.71%
Corp AEP TEX NORTH CO 99.86 5.5 1-Mar-13 5.53%
Corp COX COMMUNICATIONS INC NEW 107.18 7.125 1-Mar-13 5.79%
Corp NATIONAL FUEL GAS CO N J 97 5.25 1-Mar-13 5.81%
Corp TXU ENERGY CO LLC 105.19 7 15-Mar-13 6.03%
Corp CENTERPOINT ENERGY RESOURCES 111.45 7.875 1-Apr-13 5.77%
Corp RESIDENTIAL CAP CORP 102.29 6.5 17-Apr-13 6.07%
Corp D R HORTON INC 103 6.875 1-May-13 6.32%
Corp FUND AMERN COS INC 99.08 5.875 15-May-13 6.04%
Corp M D C HLDGS INC 94.15 5.5 15-May-13 6.59%
Corp EMBARQ CORP 103.13 6.738 1-Jun-13 6.16%
Corp ROYAL CARIBBEAN CRUISES LTD 102.5 7 15-Jun-13 6.54%
Corp CYTEC INDS INC 92.39 4.6 1-Jul-13 5.97%
Corp HARLEYSVILLE GROUP INC 98.25 5.75 15-Jul-13 6.06%
Corp PACKAGING CORP AMER 98.69 5.75 1-Aug-13 5.98%
Corp TELE COMMUNICATIONS INC 111.33 7.875 1-Aug-13 5.87%
Corp CAROLINA TEL & TELEG CO 102.5 6.75 15-Aug-13 6.30%
Corp PSI ENERGY INC 96.97 5 15-Sep-13 5.52%
Corp POTOMAC ELEC PWR CO 97.72 4.95 15-Nov-13 5.33%
Corp TELECOM ITALIA CAP 96.36 5.25 15-Nov-13 5.87%
Corp CONSOLIDATED NAT GAS CO 105.59 6.625 1-Dec-13 5.68%
Corp ROYAL CARIBBEAN CRUISES LTD 101.5 6.875 1-Dec-13 6.61%
Corp COMMERCE GROUP INC MASS 100.29 5.95 9-Dec-13 5.90%
Corp CLEVELAND ELEC ILLUM CO 99.67 5.65 15-Dec-13 5.70%
Corp IMCERA GROUP INC 106.39 7 15-Dec-13 5.91%
Corp PLAINS ALL AMERN PIPELINE L P 99.53 5.625 15-Dec-13 5.70%
Corp CENTERPOINT ENERGY RES CORP 101.08 5.95 15-Jan-14 5.77%
Corp EXELON GENERATION CO LLC 98.57 5.35 15-Jan-14 5.59%
Corp MACK-CALI RLTY L P 96.25 5.125 15-Feb-14 5.75%
Corp DUKE CAP CORP 98.73 5.5 1-Mar-14 5.71%
Corp PACIFIC GAS & ELEC CO 96.38 4.8 1-Mar-14 5.39%
Corp CORNING INC 102.14 5.9 15-Mar-14 5.55%
Corp TOLL BROS FIN CORP 90.12 4.95 15-Mar-14 6.63%
Corp METROPOLITAN EDISON CO 96.25 4.875 1-Apr-14 5.48%
Corp GLENCORE FDG LLC 95.6 6 15-Apr-14 6.74%
Corp POTOMAC ELEC PWR CO 95.09 4.65 15-Apr-14 5.44%
Corp MAGELLAN MIDSTREAM PRTNRS LP 103.26 6.45 1-Jun-14 5.92%
Corp OHIO CAS CORP 106.57 7.3 15-Jun-14 6.23%
Corp ARIZONA PUB SVC CO 99.97 5.8 30-Jun-14 5.80%
Corp WESTAR ENERGY INC 102.94 6 1-Jul-14 5.53%
Corp MARSH & MCLENNAN COS INC 96.23 5.375 15-Jul-14 5.98%
Corp MAYTAG CORP MEDTERM NTS BK ENT 102.31 6.45 15-Aug-14 6.08%
Corp CLEAR CHANNEL COMMUNICATIONS 92.88 5.5 15-Sep-14 6.65%
Corp D R HORTON INC 95 5.625 15-Sep-14 6.43%
Corp TELECOM ITALIA CAP 93.18 4.95 30-Sep-14 6.02%
Corp LUBRIZOL CORP 97.54 5.5 1-Oct-14 5.88%
Corp ATMOS ENERGY CORP 94.74 4.95 15-Oct-14 5.77%
Corp INDIANA MICH PWR CO 95.95 5.05 15-Nov-14 5.67%
Corp JONES APPAREL GROUP INC / 89.05 5.125 15-Nov-14 6.89%
Corp CONSOLIDATED NAT GAS CO 95.24 5 1-Dec-14 5.73%
Corp ONCOR ELEC DELIVERY CO 104.06 6.375 15-Jan-15 5.76%
Corp APPALACHIAN PWR CO 95.38 4.95 1-Feb-15 5.65%
Corp CENTURYTEL INC 91.87 5 15-Feb-15 6.25%
Corp PULTE HOMES INC 93.33 5.2 15-Feb-15 6.22%
Corp ENTERPRISE PRODS OPER LP 93.79 5 1-Mar-15 5.94%
Corp INTL PAPER CO 96.22 5.3 1-Apr-15 5.86%
Corp ARCHSTONE-SMITH OPER TR 97.18 5.25 1-May-15 5.66%
Corp ODYSSEY RE HLDGS CORP 95.13 6.875 1-May-15 7.65%
Corp HEALTH CARE REIT INC 98.86 5.875 15-May-15 6.04%
Corp MAYTAG CORP MEDTERM NTS BK ENT 92 5 15-May-15 6.20%
Corp AMERICAN ELEC PWR INC 96.81 5.25 1-Jun-15 5.72%
Corp CENTERPOINT ENERGY INC 106.09 6.85 1-Jun-15 5.95%
Corp HARRAHS OPER INC 95.25 5.625 1-Jun-15 6.34%
Corp CENTEX CORP 93.66 5.25 15-Jun-15 6.19%
Corp CONSTELLATION ENERGY GROUP INC 92.05 4.55 15-Jun-15 5.71%
Corp EXELON CORP 94.74 4.9 15-Jun-15 5.66%
Corp ONEOK INC NEW 95.6 5.2 15-Jun-15 5.84%
Corp COX COMMUNICATIONS INC NEW 95.96 5.5 1-Oct-15 6.08%
Corp TELECOM ITALIA CAP 94.47 5.25 1-Oct-15 6.05%
Corp NEWS AMER HLDGS INC 112.59 7.6 11-Oct-15 5.81%
Corp EQUITY ONE 95.92 5.375 15-Oct-15 5.96%
Corp PENNEY JC INC MTN BE 106.33 6.875 15-Oct-15 5.97%
Corp COMCAST CORP NEW 99.4 5.85 15-Nov-15 5.93%
Corp HARRAHS OPER INC 100.5 6.5 1-Jun-16 6.43%
Corp ROYAL CARIBBEAN CRUISES LTD 102.12 7.25 15-Jun-16 6.95%
Corp WHIRLPOOL CORP 102.83 6.5 15-Jun-16 6.11%
Corp PENNEY J C INC 113.86 7.65 15-Aug-16 5.80%
ITH MATURITY 0.5 - 10 YEARS
Current Fitch Years to

Callable
yield rating maturity
2.742 BBB No 0.59 #VALUE!
9.427 BBB No 0.59
5.984 BBB No 0.59
6.204 BBB No 0.64
7.371 BBB No 0.64
6.334 BBB No 0.68
5.917 BBB No 0.68 BBB Bond Yields, 11Aug06
6.009 BBB No 0.72 7%
6.811 BBB No 0.72
8.508 BBB No 0.72 f(x) = 0.000122797731632 x³ − 0.002314967573556 x² + 0.01524774
6% R² = 0.847946610663477
8.056 BBB No 0.72
7.16 BBB No 0.72
5.52 BBB No 0.72
7.494 BBB No 0.73 5%
Yield
7.163 BBB No 0.76

7.241 BBB No 0.81
4%
6.567 BBB No 0.84
6.901 BBB No 0.84
5.513 BBB No 0.84
3%
5.389 BBB No 0.89
4.928 BBB No 0.97
4.92 BBB No 1.01
2%
6.882 BBB No 1.01
7.001 BBB No 1.01
4.572 BBB No 1.01 1%
6.547 BBB No 1.01 0 1 2 3 4 5Maturity 6 7
7.832 BBB No 1.01
6.726 BBB No 1.06
6.827 BBB No 1.10
5.496 BBB No 1.10
4.339 BBB No 1.14
6.879 BBB No 1.14
7.322 BBB No 1.18
3.994 BBB No 1.18
6.084 BBB No 1.18
6.787 BBB No 1.18
5.529 BBB No 1.18
3.875 BBB No 1.22
6.532 BBB No 1.26
7.412 BBB No 1.26
6.305 BBB No 1.26
6.63 BBB No 1.26
6.308 BBB No 1.26
5.298 BBB No 1.27
6.236 BBB No 1.27
3.879 BBB No 1.30
7.419 BBB No 1.31
6.863 BBB No 1.35
6.316 BBB No 1.35
6.513 BBB No 1.35
6.397 BBB No 1.41
6.261 BBB No 1.43
6.127 BBB No 1.43
4.606 BBB No 1.43
5.86 BBB No 1.43
7.163 BBB No 1.43
7.077 BBB No 1.48
6.19 BBB No 1.48
6.4 BBB No 1.48
6.227 BBB No 1.52
9.069 BBB No 1.52
4.117 BBB No 1.52
6.519 BBB No 1.52
6.647 BBB No 1.52
7.278 BBB No 1.52
3.649 BBB No 1.52
8.002 BBB No 1.52
8.558 BBB No 1.52
6.733 BBB No 1.56
6.181 BBB No 1.56
4.488 BBB No 1.56
7.117 BBB No 1.56
6.522 BBB No 1.59
5.195 BBB No 1.64
6.419 BBB No 1.64
6.066 BBB No 1.64
7.156 BBB No 1.68
6.804 BBB No 1.68
3.645 BBB No 1.76
9.077 BBB No 1.76
5.564 BBB No 1.76
3.564 BBB No 1.76
6.1 BBB No 1.76
6.492 BBB No 1.80
6.626 BBB No 1.81
5.752 BBB No 1.81
3.362 BBB No 1.81
3.084 BBB No 1.85
5.993 BBB No 1.86
7.251 BBB No 1.89
6.806 BBB No 1.98
6.198 BBB No 1.98
4.27 BBB No 2.01
6.958 BBB No 2.01
8.305 BBB No 2.06
6.897 BBB No 2.06
5.653 BBB No 2.14
3.928 BBB No 2.14
3.947 BBB No 2.14
5.441 BBB No 2.16
5.633 BBB No 2.18
6.85 BBB No 2.18
3.958 BBB No 2.18
6.991 BBB No 2.19
7.535 BBB No 2.23
5.798 BBB No 2.23
6.869 BBB No 2.23
5.776 BBB No 2.23
5.517 BBB No 2.24
6.001 BBB No 2.27
5.935 BBB No 2.27
4.059 BBB No 2.27
6.251 BBB No 2.27
5.508 BBB No 2.31
5.752 BBB No 2.31
5.599 BBB No 2.33
6.359 BBB No 2.35
4.073 BBB No 2.35
4.582 BBB No 2.37
5 BBB No 2.43
6.511 BBB No 2.43
6.409 BBB No 2.43
7.512 BBB No 2.48
4.197 BBB No 2.52
4.797 BBB No 2.52
6.562 BBB No 2.54
7.193 BBB No 2.56
4.377 BBB No 2.56
5.987 BBB No 2.56
5.913 BBB No 2.59
7.455 BBB No 2.59
6.837 BBB No 2.59
3.843 BBB No 2.64
5.942 BBB No 2.64
6.505 BBB No 2.64
6.745 BBB No 2.68
6.38 BBB No 2.68
6.886 BBB No 2.68
7.233 BBB No 2.68
6.51 BBB No 2.72
6.447 BBB No 2.72
6.843 BBB No 2.72
6.132 BBB No 2.72
4.347 BBB No 2.76
4.758 BBB No 2.76
8.11 BBB No 2.81
6.736 BBB No 2.85
6.252 BBB No 2.85
6.192 BBB No 2.85
7.532 BBB No 2.93
4.811 BBB No 2.93
6.53 BBB No 2.93
4.911 BBB No 2.93
7.311 BBB No 3.01
6.948 BBB No 3.10
6.994 BBB No 3.14
6.725 BBB No 3.18
6.925 BBB No 3.23
7.919 BBB No 3.31
5.102 BBB No 3.35
4.334 BBB No 3.35
4.634 BBB No 3.43
5.694 BBB No 3.43
4.707 BBB No 3.43
4.151 BBB No 3.43
4.706 BBB No 3.43
4.151 BBB No 3.43
4.803 BBB No 3.48
7.355 BBB No 3.48
7.4 BBB No 3.48
4.892 BBB No 3.48
7.106 BBB No 3.52
4.607 BBB No 3.52
7.328 BBB No 3.56
7.271 BBB No 3.56
4.707 BBB No 3.58
5.313 BBB No 3.59
4.543 BBB No 3.59
4.785 BBB No 3.59
6.225 BBB No 3.59
4.94 BBB No 3.59
4.138 BBB No 3.64
7.485 BBB No 3.64
5.085 BBB No 3.68
4.151 BBB No 3.72
7.686 BBB No 3.76
4.165 BBB No 3.76
7.473 BBB No 3.76
5.004 BBB No 3.81
3.798 BBB No 3.81
7.379 BBB No 3.85
4.541 BBB No 3.85
7.914 BBB No 3.85
5.465 BBB No 3.89
5.151 BBB No 3.93
7.366 BBB No 3.98
6.824 BBB No 3.98
7.165 BBB No 3.98
5.039 BBB No 4.01
7.187 BBB No 4.02
5.019 BBB No 4.02
4.857 BBB No 4.06
7.178 BBB No 4.10
7.166 BBB No 4.10
4.963 BBB No 4.10
5.162 BBB No 4.10
5.049 BBB No 4.10
4.905 BBB No 4.10
4.886 BBB No 4.12
5.148 BBB No 4.14
4.756 BBB No 4.14
7.351 BBB No 4.14
4.959 BBB No 4.14
4.84 BBB No 4.18
5.432 BBB No 4.18
5.404 BBB No 4.18
4.708 BBB No 4.23
6.979 BBB No 4.23
8.928 BBB No 4.23
4.976 BBB No 4.23
5.389 BBB No 4.27
7.1 BBB No 4.27
6.768 BBB No 4.31
6.538 BBB No 4.31
6.605 BBB No 4.35
4.836 BBB No 4.35
5.848 BBB No 4.35
5.779 BBB No 4.35
4.612 BBB No 4.35
5.583 BBB No 4.41
4.43 BBB No 4.42
6.629 BBB No 4.43
6.864 BBB No 4.43
5.148 BBB No 4.43
4.884 BBB No 4.43
5.233 BBB No 4.43
5.576 BBB No 4.43
5.022 BBB No 4.43
6.363 BBB No 4.47
6.998 BBB No 4.47
7.238 BBB No 4.48
7.919 BBB No 4.48
6.342 BBB No 4.52
6.322 BBB No 4.52
5.538 BBB No 4.52
5.975 BBB No 4.54
6.24 BBB No 4.56
5.563 BBB No 4.59
6.127 BBB No 4.59
6.35 BBB No 4.59
6.177 BBB No 4.59
5.443 BBB No 4.59
6.453 BBB No 4.59
6.433 BBB No 4.59
4.901 BBB No 4.64
6.282 BBB No 4.64
6.213 BBB No 4.64
6.425 BBB No 4.64
5.069 BBB No 4.64
6.421 BBB No 4.68
6.681 BBB No 4.68
7.779 BBB No 4.68
5.708 BBB No 4.72
6.366 BBB No 4.72
6.378 BBB No 4.72
7.352 BBB No 4.72
5.907 BBB No 4.72
5.81 BBB No 4.73
4.696 BBB No 4.76
4.812 BBB No 4.76
6.297 BBB No 4.76
6.648 BBB No 4.81
6.603 BBB No 4.81
6.979 BBB No 4.84
5.897 BBB No 4.85
6.498 BBB No 4.85
5.953 BBB No 4.85
5.825 BBB No 4.86
5.958 BBB No 4.89
6.837 BBB No 4.92
6.457 BBB No 4.93
6.303 BBB No 4.93
6.554 BBB No 4.93
6.27 BBB No 4.93
5.973 BBB No 4.93
7.233 BBB No 4.98
5.872 BBB No 5.01
7.016 BBB No 5.01
6.345 BBB No 5.01
6.349 BBB No 5.10
6.898 BBB No 5.10
6.066 BBB No 5.10
6.405 BBB No 5.14
7.583 BBB No 5.14
6.036 BBB No 5.18
6.023 BBB No 5.23
6.116 BBB No 5.23
6.146 BBB No 5.27
5.884 BBB No 5.43
6.079 BBB No 5.43
6.345 BBB No 5.52
7.058 BBB No 5.52
6.532 BBB No 5.60
5.303 BBB No 5.60
5.858 BBB No 5.60
7.027 BBB No 5.60
6.705 BBB No 5.60
6.088 BBB No 5.60
7.41 BBB No 5.60
6.397 BBB No 5.60
6.483 BBB No 5.64
5.481 BBB No 5.64
6.389 BBB No 5.68
6.112 BBB No 5.68
6.415 BBB No 5.68
6.504 BBB No 5.73
7.225 BBB No 5.73
5.65 BBB No 5.81
6.493 BBB No 5.81
6.709 BBB No 5.85
6.198 BBB No 5.88
6.018 BBB No 5.89
6.706 BBB No 5.89
7.157 BBB No 5.93
7.634 BBB No 6.02
6.19 BBB No 6.02
5.599 BBB No 6.02
6.598 BBB No 6.06
6.776 BBB No 6.06
5.012 BBB No 6.10
5.677 BBB No 6.10
5.619 BBB No 6.10
5.703 BBB No 6.15
6.413 BBB No 6.15
5.671 BBB No 6.18
5.401 BBB No 6.18
6.97 BBB No 6.18
5.713 BBB No 6.22
6.958 BBB No 6.44
5.966 BBB No 6.44
7.877 BBB No 6.44
6.777 BBB No 6.44
5.846 BBB No 6.48
5.51 BBB No 6.52
5.767 BBB No 6.52
6.073 BBB No 6.52
5.508 BBB No 6.56
6.648 BBB No 6.56
5.412 BBB No 6.56
6.654 BBB No 6.60
7.066 BBB No 6.64
6.354 BBB No 6.69
6.675 BBB No 6.73
5.93 BBB No 6.76
5.841 BBB No 6.76
6.533 BBB No 6.81
6.829 BBB No 6.85
4.979 BBB No 6.89
5.852 BBB No 6.93
5.827 BBB No 6.98
7.074 BBB No 6.98
6.585 BBB No 7.02
5.156 BBB No 7.10
5.066 BBB No 7.27
5.449 BBB No 7.27
6.274 BBB No 7.31
6.773 BBB No 7.31
5.933 BBB No 7.33
5.668 BBB No 7.35
6.58 BBB No 7.35
5.652 BBB No 7.35
5.887 BBB No 7.44
5.449 BBB No 7.44
5.428 BBB No 7.44
5.324 BBB No 7.52
5.571 BBB No 7.56
4.98 BBB No 7.56
5.776 BBB No 7.60
5.493 BBB No 7.60
5.065 BBB No 7.64
6.276 BBB No 7.68
4.89 BBB No 7.68
6.246 BBB No 7.81
6.85 BBB No 7.85
5.802 BBB No 7.89
5.829 BBB No 7.89
5.585 BBB No 7.93
6.304 BBB No 8.02
5.922 BBB No 8.10
5.921 BBB No 8.10
5.312 BBB No 8.14
5.639 BBB No 8.15
5.225 BBB No 8.18
5.263 BBB No 8.27
5.755 BBB No 8.27
5.25 BBB No 8.31
6.203 BBB No 8.44
6.126 BBB No 8.44
5.19 BBB No 8.48
5.443 BBB No 8.52
5.571 BBB No 8.52
5.331 BBB No 8.56
5.508 BBB No 8.64
5.402 BBB No 8.73
7.227 BBB No 8.73
5.942 BBB No 8.76
5.435 BBB No 8.76
5.423 BBB No 8.81
6.457 BBB No 8.81
5.906 BBB No 8.81
5.606 BBB No 8.85
4.943 BBB No 8.85
5.172 BBB No 8.85
5.439 BBB No 8.85
5.732 BBB No 9.15
5.557 BBB No 9.15
6.75 BBB No 9.17
5.604 BBB No 9.18
6.466 BBB No 9.18
5.886 BBB No 9.27
6.468 BBB No 9.81
7.099 BBB No 9.85
6.321 BBB No 9.85
6.719 BBB No 10.02
B Bond Yields, 11Aug06
0.002314967573556 x² + 0.015247747565798 x + 0.02211184123471
4 5Maturity 6 7 8 9 10 11
A B C
1
COMPUTING KRAFT'S rD FROM A YIELD CURVE
YTM=0.0001*time3-0.0023*time2+0.0152*time+0.0221
2 Average time to maturity (years) 5
3 Yield 5.31% #VALUE!
4
5 Sensitivity analysis
6 Years to maturity #VALUE!
7 3 4.97%
8 4 5.25%
9 5 5.31%
10 6 5.21%
11 7 5.01%
12 8 4.77%
13 9 4.55%
14 10 4.41%
15 11 4.41%
16
17
18 Average time to maturity (years) 1
19 Yield 0.03444
20
21 Sensitivity analysis
22 Years to maturity #VALUE!
23 3 4.97%
24 4 5.25%
25 5 5.31%
26 6 5.21%
27 7 5.01%
28 8 4.77%
29 9 4.55%
30 10 4.41%
31 11 4.41%
A B C
1 KRAFT: COST OF EQUITY rE BASED ON DIVIDENDS
2 Stock price, end 2005 27.75
3 Current dividend, D0 0.92 #VALUE!
5 Using growth rate Dec01-Dec05 19.15% #VALUE!
6 Using growth rate Dec03-Dec05 16.79% #VALUE!
7
Dividends
8
Date per share
9 20-Dec-01 0.130
10 13-Mar-02 0.130
11 26-Jun-02 0.130
12 12-Sep-02 0.150
13 19-Dec-02 0.150
14 12-Mar-03 0.150
15 25-Jun-03 0.150
16 11-Sep-03 0.180
17 18-Dec-03 0.180
18 11-Mar-04 0.180
19 23-Jun-04 0.180
20 10-Sep-04 0.205
21 20-Dec-04 0.205
22 11-Mar-05 0.205
23 24-Jun-05 0.205
24 2-Sep-05 0.230
25 22-Dec-05 0.230
26
27 Computing the growth rate of dividends
28 Quarterly growth, Dec01-Dec05 3.63% #VALUE!
29 Annualized 15.33% #VALUE!
30
31 Quarterly growth, Dec03-Dec05 3.11% #VALUE!
A B C D
1 KRAFT: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY
2 Shares outstanding 1,669,880,755
3 Share price, end 2005 27.75
4 Equity value, E 46,339,190,951 #VALUE!
5 End 2005 total equity payout 2,612,000,000 #VALUE!
6
7 High growth rate, ghigh 20.00% <-- Guess
8 Number of high-growth years 3 <-- Guess
9 Normal growth rate, gnormal 6% <-- Guess
10
Cost of equity, rE, using the
11
function twostagegordon #VALUE! #VALUE!
12
Stock
13 Dividends paid Stock issuance
Date repurchases
14 31-Dec-01 170,000,000 225,000,000
15 31-Dec-02 372,000,000 936,000,000 8,425,000,000
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
E F
D ON CASH
1 FLOW TO EQUITY
2
3
4
5
6
7
8
9
10
11
12
Cash flow to
13
equity holders
14 395,000,000 #VALUE!
15 -7,117,000,000 #VALUE!
16 1,461,000,000
17 1,968,000,000
18 2,612,000,000
19
20 60.36% #VALUE!
21 33.71% #VALUE!
22
23
24
25
26
A B
COMPUTING THE COST OF EQUITY rE FOR KRAFT USING THE MARKET
1
2 Market price/earnings multiple, December 2005 18
4 Anticipated growth of equity cash flow 6.00%
6
7 Kraft cost of equity calculations
8 Kraft beta 0.4700
9 Kraft tax rate, TC 29.37%
11 Kraft cost of equity, rE,Kraft
14
C
UITY rE FOR KRAFT USING THE MARKET
1
2
3
4
5 #VALUE!
6
7
8 <-- From Yahoo
9 <-- Computed from Kraft financials
10
11
12 #VALUE!
13 #VALUE!
14
15
A B
1 COMPUTING THE WACC FOR KRAFT
2 Shares outstanding 1,669,880,755
4 Equity value, E 46,339,190,951
5 Net debt, D 10,884,000,000
6
7 WACC based on Gordon per-share dividends and interest from financial statements
8 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 #VALUE!
17 WACC #VALUE!
18
19 WACC based on classic CAPM and interest from financial statements
23 WACC 6.26%
24
25 WACC based on tax-adjusted CAPM and interest from financial statements
29 WACC 5.64%
C
COMPUTING
1 THE WACC FOR KRAFT
2
3
4
5
6
share dividends
7 and interest from financial statements
8 #VALUE!
9 #VALUE!
10 #VALUE!
11 #VALUE!
12
ty payouts and
13interest from financial statements
14 #VALUE!
15 #VALUE!
16 #VALUE!
17 #VALUE!
18
M and interest19
from financial statements
20 #VALUE!
21 #VALUE!
22 #VALUE!
23 #VALUE!
24
CAPM and interest
25 from financial statements
26 #VALUE!
27 #VALUE!
28 #VALUE!
29 #VALUE!
A B C
TYSON: COST OF EQUITY rE BASED
1
ON DIVIDENDS
2 Stock price, 11Aug06 13.45
4 Dividend growth rate 0%
5 Gordon cost of equity, rE 1.19% #VALUE!
6
Dividends
7
Date per share
8 29-Aug-01 0.04
9 28-Nov-01 0.04
10 27-Feb-02 0.04
11 29-May-02 0.04
12 28-Aug-02 0.04
13 26-Nov-02 0.04
14 26-Feb-03 0.04
15 28-May-03 0.04
16 27-Aug-03 0.04
17 26-Nov-03 0.04
18 26-Feb-04 0.04
19 27-May-04 0.04
20 30-Aug-04 0.04
21 29-Nov-04 0.04
22 25-Feb-05 0.04
23 30-Aug-05 0.04
24 27-Feb-06 0.04
25 30-May-06 0.04
A B C D
1 TYSON: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY
2 Shares outstanding 354,820,000
3 Share price, 11Aug06 13.45
4 Equity value, E 4,772,329,000 #VALUE!
5 Current (Aug06) total equity payout 81,631,562 #VALUE!
6
7 High growth rate, ghigh 10.00% <-- Guess
8 Number of high-growth years 3 <-- Guess
9 Normal growth rate, gnormal 2% <-- Guess
10
Cost of equity, rE, using the function
11
twostagegordon #VALUE! #VALUE!
12
Stock
Date repurchases
14 2001 48,000,000 35,000,000 34,000,000
15 2002 19,000,000 58,000,000 0
16 2003 41,000,000 54,000,000 0
17 2004 72,000,000 55,000,000 43,000,000
18 2005 45,000,000 55,000,000 24,000,000
19 Growth rates
20 Four year -1.60% 11.96%
21 Two year 4.76% 0.92%
E F
ON CASH1FLOW TO EQUITY
2
3
4
5
6
7
8
9
10
11
12
Cash flow to
13
equity holders
14 49,000,000 #VALUE!
15 77,000,000 #VALUE!
16 95,000,000
17 84,000,000
18 76,000,000
19
20 11.60% #VALUE!
21 -10.56% #VALUE!
A B
COMPUTING THE COST OF EQUITY rE FOR TYSON USING THE MARKET
1
2 Market price/earnings multiple, August 2006 17
6
7 Tyson cost of equity calculations
8 Tyson beta 0.20
9 Tyson tax rate, TC 29.55%
11 Tyson cost of equity, rE,Kraft
14
C
UITY rE FOR TYSON USING THE MARKET
1
2
3
4
5 #VALUE!
6
7
8 <-- From Yahoo
9 <-- Computed from Tyson financials
10
11
12 #VALUE!
13 #VALUE!
14
15
A B C D
1 COMPUTING THE COST OF DEBT FOR TYSON
2 2005 2004
4 Current debt 126,000,000 338,000,000
5 Long term debt 2,869,000,000 3,024,000,000
6 Net debt 2,955,000,000 3,329,000,000 #VALUE!
7
8 Interest paid 227,000,000
9
10 Interest cost 7.22% #VALUE!
A B
1 COMPUTING THE WACC FOR TYSON
4 Equity value, E 4,772,329,000
5 Net debt, D 2,955,000,000
6
11 WACC 2.68%
12
14 Cost of equity, rE #VALUE!
17 WACC #VALUE!
18
23 WACC 5.51%
24
29 WACC 4.79%
30
31 Estimated WACC? #VALUE!
C
COMPUTING
1 THE WACC FOR TYSON
2
3
4
5
6
share dividends
8 #VALUE!
9 #VALUE!
10 #VALUE!
11 #VALUE!
12
ty payouts and
14 #VALUE!
15 #VALUE!
16 #VALUE!
17 #VALUE!
18
M and interest19
20 #VALUE!
21 #VALUE!
22 #VALUE!
23 #VALUE!
24
CAPM and interest
26 #VALUE!
27 #VALUE!
28 #VALUE!
29 #VALUE!
30
31 #VALUE!
A B C D
1
CASCADE: COST OF EQUITY rE BASED ON DIVIDENDS
Dividend growth rate computed on daily basis
2 Share price, 31jan06 50.69
5 Using growth since 16-Feb-99 7.32% #VALUE!
6 Using growth since 02-Jan-04 18.11% #VALUE!
7 Using growth since 29-Dec-04 26.10% #VALUE!
8
Dividends Days between
9
Date per share dividend payments
10 16-Feb-99 0.10
11 18-May-99 0.10 91 #VALUE!
12 17-Aug-99 0.10 91 #VALUE!
13 1-Dec-99 0.10 106
14 22-Feb-00 0.10 83
15 16-May-00 0.10 84
16 24-Aug-00 0.10 100
17 29-Nov-02 0.10 827
18 26-Mar-03 0.10 117
19 25-Jun-03 0.10 91
20 18-Sep-03 0.10 85
21 2-Jan-04 0.11 106
22 29-Mar-04 0.11 87
23 23-Jun-04 0.11 86
24 20-Sep-04 0.11 89
25 29-Dec-04 0.12 100
26 28-Mar-05 0.12 89
27 1-Jul-05 0.12 95
28 4-Oct-05 0.15 95
29 3-Jan-06 0.15 91
30
31 Computing the growth rate of dividends
32 Daily growth, 16-Feb-99 - 03-Jan-06 0.0161% #VALUE!
34
35 Daily growth, 02-Jan-04 - 03-Jan-06 0.0424% #VALUE!
37
38 Daily growth, 29-Dec-04 - 03-Jan-06 0.060% #VALUE!
A B C D
1 CASCADE: COST OF EQUITY rE BASED ON CASH FLOW TO EQUITY
3 Share price, 31jan06 50.69
4 Equity value, E 635,449,840 #VALUE!
5 2005 total equity payout 3,904,000 #VALUE!
6 Growth rate of payouts 9.78% #VALUE!
7 Cost of equity, rE 10.46% #VALUE!
8
9
Stock
Date repurchases
11 1/31/2001 0 2,448,000
12 1/31/2002 1,354,000 0
13 1/31/2003 1,396,000 1,200,000 73,000
14 1/31/2004 0 4,936,000 1,299,000
15 1/31/2005 5,478,000 1,616,000
16 1/31/2006 6,691,000 2,787,000
17 Growth rate
E F
ED ON CASH
1 FLOW TO EQUITY
2
3
4
5
6
7
8
9
Cash flow to
10
equity holders
11 2,448,000
12 1,354,000
13 2,523,000
14 3,637,000
15 3,862,000
16 3,904,000
17 9.78% #VALUE!
A B
COMPUTING THE COST OF EQUITY rE FOR CASCADE USING THE

1
MARKET PRICE/EARNINGS MULTIPLE TO COMPUTE E(rM)
2 Market price/earnings multiple, December 2005 18
6
7 Cascade cost of equity calculations
8 Cascade beta 1.65
9 Cascade tax rate, TC 32.42%
11 Cascade cost of equity, rE,Cascade
14
C
EQUITY rE FOR CASCADE USING THE

1
NGS MULTIPLE TO COMPUTE E(rM)
2
3
4
5 #VALUE!
6
7
8 <-- From Yahoo
9 <-- Computed from Cascade financials
10
11
12 #VALUE!
13 #VALUE!
14
15
http://www.bullandbearwise.com
A B C
1 COMPUTING THE COST OF DEBT rD FOR CASCADE
2 2006/01/31 2005/01/31
4 Marketable securities 23,004,000 1,503,000
5
6
7 Notes payable to banks 4,741,000 2,461,000
8 Current portion of long-term debt 12,681,000 12,916,000
9 Long-term debt, net of current portion 12,500,000 25,187,000
10 Total debt 29,922,000 40,564,000
11
12 Interest expense 2,741,000 3,570,000
13 Interest income 979,000 562,000
14
15 Interest cost 7.78% #VALUE!
16 Interest income 2.97% #VALUE!
17
18 Debt net of cash -5,571,000 10,082,000
19 Debt net of cash and marketable securities -28,575,000 8,579,000
D
BT rD FOR1CASCADE
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18 #VALUE!
19
A B
1
COMPUTING THE WACC FOR CASCADE
The company has negative leverage
4 Equity value, E 635,449,840
5 Net debt, D -28,575,000
6
11 WACC 18.71%
12
17 WACC 10.70%
18
23 WACC 11.85%
24
29 WACC 12.94%
30
31 Estimated WACC? 11.83%
C
OMPUTING1 THE WACC FOR CASCADE
The company has negative leverage
2 #VALUE!
3 #VALUE!
4 #VALUE!
5 #VALUE!
6
share dividends
8 #VALUE!
9 #VALUE!
10 #VALUE!
11 #VALUE!
12
ty payouts and
14 #VALUE!
15 #VALUE!
16 #VALUE!
17 #VALUE!
18
M and interest19
20
21
22
23 #VALUE!
24
CAPM and interest
26
27
28
29 #VALUE!
30
31 #VALUE!
A B C
1
FORD MOTOR CO. DIVIDEND HISTORY
1989-1998
2 Year Dividend
3 1989 3.00
4 1990 3.00
5 1991 1.95
6 1992 1.60
7 1993 1.60
8 1994 1.33
9 1995 1.23
10 1996 1.46
11 1997 1.64
12 1998 22.81
13 Growth rate, 1989-1997 -7.27% #VALUE!
14 Growth rate, 1989-1998 25.28% #VALUE!
15
16
17 FORD'S DIVIDENDS EXCLUDING THE 1998 $21.09 DIVIDEND
18 Year Dividend
19 1989 3.00
20 1990 3.00
21 1991 1.95
22 1992 1.60
23 1993 1.60
24 1994 1.33
25 1995 1.23
26 1996 1.46
27 1997 1.64
28 1998 1.72
29 Growth rate, 1994-1998 6.64% #VALUE!
30 Ford's stock price, end-1998 58.69
31 Gordon cost of equity 9.77% #VALUE!
A B C D E F G
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 28.77%
13 Feb-97 Regressing
790.82 0.59%Big City Bagel
Feb-97on the
22.50S&P 500
25.13%
14 Mar-97 Monthly
757.12 data, May 1996Mar-97
-4.35% - March25.631999 13.01%
15 Apr-97 801.34 100% 5.68% Apr-97 30.00 15.76%
16 May-97 848.28 5.69% May-97 25.00 -18.23%
Big City
85%
17 Jun-97 885.14 4.25% Jun-97 24.38 -2.53%
18 Jul-97 954.31 7.52%
70% Jul-97 26.25 7.41%
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%
40%
22 Nov-97 955.4 4.36% Nov-97 12.50 20.76%
23 Dec-97 970.43 1.56%
25% 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 4.87% Mar-98 4.38 0.00%
-5%
27 Apr-98
-5% -4% -3% 1111.75
-2% -1% 0.90%0% 1% 2% Apr-98
3% 4% 2.19 5% -69.31%
6% 7% 8%
28 f(x) = 0.324118104833996
May-98 x − 0.130771114613683
1090.82 -1.90% May-98 2.03 -7.41%
R² = 0.001647386261102 -20%
29 Jun-98 1133.84 3.87% Jun-98 1.00 -70.86% S&P
30 Jul-98 1120.67 -35%
-1.17% Jul-98 1.00 0.00%
31 Aug-98 957.28 -15.76% Aug-98 0.63 -47.00%
-50%
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 5.74% Nov-98 0.38 40.55%
35 Dec-98 1229.23 -80%
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 #VALUE!
43 -0.1127 #VALUE!
44 0.0000 #VALUE!
45
46 #VALUE! #VALUE!
47 #VALUE! #VALUE!
H
CITY BAGELS
1
2
3
4
5 #VALUE!
10
11
12
the S&P 500
13
h 1999 14
15
16
17
18
19
20
21
22
23
24
25
26
5% 6% 27 7% 8%
28
S&P
29
30
31
32
33
34
35
36
37
38
39 #VALUE!
40 #VALUE!
41
42
43
44
45
46
47
A B C
COMPUTING THE COST OF EQUITY rE FOR

1 BIG CITY BAGELS
March 1999
2 Big City's beta -0.0542
3
4 Risk-free rate, rf 4.29%
7
8
9
10 Supporting numbers
11 P/E ratio of S&P 500, March 1999 50
12 Payout ratio, b 50%
13 Expected growth, g 8%
A B C
COMPUTING THE COST OF EQUITY rE FOR
1 BIG CITY BAGELS
Assumes that forward-looking beta = 1.3
2 Big City's beta 1.3000
3
4 Risk-free rate, rf 4.29%
7
8
9
10 Supporting numbers
11 P/E ratio of S&P 500, March 1999 50
12 Payout ratio, b 50%
13 Expected growth, g 8%
PRICE DATA FOR DOW-JONES INDUSTRIAL 30 COMPONENT
American American
Alcoa Boeing Citigroup Caterpillar
Date International Express
AA BA C CAT
AIG AXP
4/2/2002 30.54 67.13 34.27 40.92 34.28 24.70
5/1/2002 31.54 65.04 35.52 39.27 34.33 23.64
6/3/2002 29.89 66.31 30.35 41.44 30.81 22.14
7/1/2002 24.53 62.12 29.53 38.23 26.66 20.38
8/1/2002 22.75 61.03 30.20 34.29 28.07 19.90
9/3/2002 17.50 53.20 26.11 31.57 25.41 16.97
10/1/2002 20.00 60.84 30.53 27.52 31.83 18.79
11/1/2002 23.32 63.37 32.68 31.67 33.49 22.96
12/2/2002 20.79 56.31 29.74 30.68 30.31 21.03
1/2/2003 18.04 52.68 29.89 29.38 29.75 20.39
2/3/2003 18.86 47.98 28.25 25.77 28.88 21.79
3/3/2003 17.82 48.18 27.96 23.43 29.84 22.81
4/1/2003 21.23 56.46 31.93 25.51 34.00 24.54
5/1/2003 22.79 56.39 35.14 28.85 35.71 24.33
2/1/2007 33.41 67.11 56.72 87.26 50.37 64.43
3/1/2007 33.90 67.22 56.25 88.91 51.34 67.03
4/2/2007 34.59 67.23 55.96 90.50 51.57 67.63
RIAL 30 COMPONENTS, APRIL 2002 - APRIL 2007
General General Hewlett
DuPont Disney Home Depot Honeywell
Electric Motors Packard
DD DIS HD HON
GE GM HPQ
37.72 22.04 27.56 50.54 43.85 32.59 15.92
39.29 21.79 27.20 49.33 39.42 35.00 17.78
37.92 17.97 25.53 42.43 34.77 31.46 14.30
35.80 16.86 28.30 36.95 29.24 28.89 13.24
34.72 14.91 26.50 38.43 31.18 26.90 12.56
31.07 14.40 21.82 31.24 24.75 19.45 10.98
35.53 15.88 22.35 26.70 27.38 21.50 14.87
38.75 18.85 24.00 32.35 25.03 23.55 18.33
36.82 15.70 21.72 30.03 22.83 21.73 16.41
32.89 16.85 20.64 29.60 19.86 22.13 16.46
32.16 16.42 21.62 27.90 22.29 20.89 14.98
34.08 16.39 22.92 27.78 23.21 19.50 14.77
37.30 17.97 26.47 29.78 26.81 21.54 15.49
37.25 18.92 25.80 29.60 30.96 24.10 18.53
50.73 34.25 34.91 31.90 39.36 46.40 39.27
49.43 34.43 35.36 30.64 36.74 46.06 40.14
49.32 34.91 35.02 31.90 38.02 47.26 41.80
International
Johnson & JP Morgan
Business Intel Coca Cola McDonalds 3M Company
Johnson Chase
Machines INTC KO MCD MMM
JNJ JPM
IBM
79.91 27.16 57.99 28.87 49.46 25.90 56.71
76.91 26.24 55.90 29.57 49.51 27.31 56.83
68.83 17.36 47.62 27.90 50.09 25.95 55.72
67.30 17.85 47.93 20.75 44.67 22.57 57.01
72.22 15.86 49.67 21.95 45.61 21.67 56.88
55.87 13.21 49.46 15.79 43.06 16.11 50.06
75.63 16.46 53.73 17.56 41.73 16.52 57.79
83.43 19.88 52.32 21.30 41.16 17.11 59.40
74.39 14.83 49.29 20.31 39.54 14.87 56.40
75.06 14.91 49.19 20.03 36.49 13.17 56.98
74.97 16.45 48.33 19.46 36.27 12.59 57.65
75.43 15.52 53.32 20.35 36.72 13.37 59.79
81.65 17.54 51.93 25.55 36.65 15.81 57.96
84.82 19.87 50.30 28.60 41.34 17.32 58.47
92.94 19.86 62.93 49.04 46.35 43.69 74.08
94.26 19.13 60.26 48.04 48.00 45.05 76.43
96.52 19.58 61.55 48.77 49.52 45.78 76.75
Procter United
Altria Group Merck Microsoft Pfizer AT&T
Gamble Technology
MO MRK MSFT PFE T
PG UTX
31.75 42.71 22.49 31.96 40.80 24.27 32.41
33.40 44.88 21.91 30.53 40.48 26.79 31.92
25.80 40.06 23.54 30.88 40.68 23.83 31.47
27.20 39.24 20.65 28.54 40.75 21.80 32.21
29.54 39.97 21.12 29.30 40.59 19.49 27.63
23.23 36.43 18.82 25.71 40.92 15.84 26.29
24.40 43.23 23.01 28.14 40.68 20.48 28.70
22.58 47.35 24.82 28.04 38.88 22.75 29.18
24.65 45.40 22.25 27.19 39.53 21.64 28.94
23.03 44.42 20.42 27.13 39.55 19.68 29.70
23.50 42.30 20.46 26.65 37.83 16.75 27.47
18.55 44.24 20.90 27.85 41.16 16.16 27.10
19.04 46.99 22.08 27.48 41.71 19.10 28.99
25.57 44.89 21.25 27.85 42.63 20.82 32.14
62.62 43.77 28.17 24.96 63.49 36.47 65.64
65.90 44.17 27.87 25.26 63.16 39.07 65.00
70.75 45.54 28.55 25.84 63.00 39.27 64.93
Verizon Walmart Exxon Mobile
DJI S&P500
VZ WMT XOM
31.06 53.03 35.84 9946.22 1076.92

33.30 51.36 35.84 9925.25 1067.14
31.09 52.29 36.72 9243.26 989.82
25.81 46.75 32.99 8736.59 911.62
24.25 50.83 32.02 8663.50 916.07
21.46 46.87 28.81 7591.93 815.28
29.89 50.97 30.40 8397.03 885.76
33.15 51.31 31.64 8896.09 936.31
30.67 48.15 31.77 8341.63 879.82
30.57 45.57 31.05 8053.81 855.70
27.62 45.81 31.14 7891.08 841.15
28.23 49.68 31.99 7992.13 848.18
30.18 53.78 32.22 8480.09 916.92
30.56 50.24 33.56 8850.26 963.59
37.00 48.08 71.68 12268.63 1406.82
37.52 46.95 75.45 12354.35 1420.86
38.00 48.27 77.22 12560.83 1443.76
A B C D E F G
1
RETURN DATA, ALPHA, BETA, R-SQUARED
For Dow-Jones 30 Industrials, April 2002 - April 200
2
3 #VALUE!
4 #VALUE!
5 #VALUE!
American American
Alcoa Boeing Citigroup Caterpillar
6 International Express
AA BA C CAT
AIG AXP
7 Alpha -0.0074 -0.0058 0.0020 0.0097 0.0009 0.0100

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

Pfizer AT&T Verizon Walmart
6 Gamble Technology Mobile DJI
PFE T VZ WMT
PG UTX XOM
7 -0.0067 0.0062 0.0006 0.0083 -0.0033 -0.0043 0.0091 -0.0010

8 0.6561 0.2041 1.5124 0.6630 1.3658 0.5542 0.7557 0.9990
9 0.1657 0.0422 0.4957 0.2421 0.4236 0.1446 0.2416 0.9332
12
13
14
15
16 -4.58% -0.79% 9.88% -1.52% 6.96% -3.20% 0.00% -0.21%
17 1.14% 0.49% -11.71% -1.42% -6.87% 1.79% 2.43% -7.12%
18 -7.88% 0.17% -8.90% 2.32% -18.61% -11.20% -10.71% -5.64%
19 2.63% -0.39% -11.20% -15.34% -6.23% 8.37% -2.98% -0.84%
20 -13.07% 0.81% -20.74% -4.97% -12.22% -8.11% -10.56% -13.20%
21 9.03% -0.59% 25.69% 8.77% 33.13% 8.39% 5.37% 10.08%
22 -0.36% -4.53% 10.51% 1.66% 10.35% 0.66% 4.00% 5.77%
23 -3.08% 1.66% -5.00% -0.83% -7.78% -6.36% 0.41% -6.44%
24 -0.22% 0.05% -9.49% 2.59% -0.33% -5.51% -2.29% -3.51%
25 -1.79% -4.45% -16.12% -7.81% -10.15% 0.53% 0.29% -2.04%
26 4.40% 8.44% -3.59% -1.36% 2.18% 8.11% 2.69% 1.27%
27 -1.34% 1.33% 16.71% 6.74% 6.68% 7.93% 0.72% 5.93%
28 1.34% 2.18% 8.62% 10.32% 1.25% -6.81% 4.07% 4.27%
29 9.61% -2.93% 0.38% 3.70% 4.13% 2.15% -1.35% 1.52%
30 -2.34% -0.95% -7.50% 6.02% -11.01% 4.10% -0.94% 2.73%
31 -10.44% -0.66% -3.94% 6.82% 0.91% 5.65% 6.46% 1.95%
32 1.54% 6.14% -0.92% -3.79% -8.48% -5.76% -2.96% -1.51%
33 3.94% 6.20% 9.15% 9.18% 4.65% 5.55% -0.03% 5.52%
34 6.52% -2.10% -2.96% 1.59% -2.30% -5.78% -0.35% -0.19%
35 5.09% 3.70% 11.30% 10.05% 6.61% -4.59% 12.43% 6.64%
36 3.62% 1.67% -1.05% 0.82% 6.00% 1.50% -0.50% 0.33%
37 0.51% 1.40% -6.01% -3.30% 3.93% 10.08% 3.93% 0.91%
38 -4.48% 2.29% 2.17% -6.52% -4.81% 0.44% -1.37% -2.16%
39 2.02% 1.33% 2.73% -0.02% 4.28% -4.62% 2.27% -1.28%
40 -0.71% 1.90% -4.95% -1.52% -8.74% -2.01% 2.27% -0.36%
41 -3.05% 0.99% 2.32% 7.82% 4.53% -5.98% 2.65% 2.40%
42 -7.00% -3.84% 5.70% 2.17% 7.37% 0.98% 4.17% -2.88%
43 2.73% 7.06% 1.74% 0.82% 1.84% -0.41% 0.16% 0.34%
44 -6.57% -3.36% 0.62% -0.56% 0.33% 1.00% 4.74% -0.92%
Y Z AA AB AC AD AE AF AG
45 -5.52% -5.12% -1.55% -0.60% 0.21% 1.35% 1.81% -0.53%
46 -3.56% 4.40% -0.36% 5.35% 5.30% -3.52% 4.59% 3.92%
47 -3.24% 2.95% 2.35% 5.75% -1.77% 1.69% 0.02% 3.35%
48 -10.68% -2.97% -6.84% -2.60% -11.98% -0.80% 0.67% -2.76%
49 9.18% -0.25% 1.26% -0.37% 1.06% -1.51% 20.92% 2.60%
50 -0.08% -0.18% -1.54% 1.76% -1.29% -2.65% -6.04% -2.47%
51 3.37% 2.66% 1.82% 0.06% 1.96% -6.12% -4.40% -3.01%
52 3.34% 1.84% -1.77% 5.19% -1.18% 0.50% -0.95% 2.66%
53 -1.15% -4.46% 1.54% -3.81% -2.35% 2.04% 2.24% -1.86%
54 -3.98% 5.84% 4.26% -1.27% 0.23% 2.36% 2.19% 3.50%
55 -3.23% -0.28% -1.52% -0.96% -4.54% -9.00% 2.43% -1.51%
56 -2.01% 6.93% -0.45% 3.60% -0.07% -2.56% 5.90% 0.83%
57 -13.84% -5.51% 0.86% -1.07% -2.41% 7.66% -12.38% -1.22%
58 -1.67% 2.12% 4.35% 5.27% 1.47% 2.60% 3.81% 3.44%
59 9.53% 1.19% -1.69% 3.78% -5.98% -3.38% -3.26% -0.82%
60 9.64% 2.80% 7.12% 4.30% 6.26% -1.49% 11.08% 1.37%
61 2.90% 1.17% 6.12% 0.61% 6.25% -1.63% -5.00% 1.18%
62 -4.96% -3.91% -2.01% -0.91% 1.07% 4.42% 2.47% 1.05%
63 1.65% 1.55% -1.85% 8.02% -1.89% -4.78% 3.58% 2.29%
64 -5.87% -7.05% -0.60% -0.06% -5.68% 7.66% -3.00% -1.76%
65 -0.83% 2.46% 6.81% 1.43% 7.05% -0.59% 0.73% -0.16%
66 10.21% 1.63% 8.45% -1.95% 2.21% -7.91% 9.90% 0.32%
67 6.78% 9.67% 3.74% 1.26% 3.95% 0.86% 0.36% 1.73%
68 2.88% 0.13% 4.47% 1.02% 5.40% 9.79% -0.84% 2.58%
69 -6.23% 2.75% 6.11% 3.67% 0.72% -0.08% 6.23% 3.38%
70 3.98% -0.96% -1.02% -1.42% -2.03% -6.66% 7.70% 1.16%
71 -5.95% 2.33% 5.30% -3.18% 6.37% 0.55% -0.22% 1.95%
72 1.32% 1.41% 6.17% 8.43% 4.48% 3.21% -3.36% 1.26%
73 -3.93% -2.15% -2.22% -3.16% -2.96% 1.30% -2.90% -2.84%
74 1.19% -0.52% 6.89% -0.98% 1.40% -2.38% 5.13% 0.70%
75 2.27% -0.25% 0.51% -0.11% 1.27% 2.77% 2.32% 1.66%
AH
2
3
4
5
6 S&P500
7 0.0000
8 1.0000
9 1.0000
10
11
12
13
14
15
16 -0.91%
17 -7.52%
18 -8.23%
19 0.49%
20 -11.66%
21 8.29%
22 5.55%
23 -6.22%
24 -2.78%
25 -1.71%
26 0.83%
27 7.79%
28 4.96%
29 1.13%
30 1.61%
31 1.77%
32 -1.20%
33 5.35%
34 0.71%
35 4.95%
36 1.71%
37 1.21%
38 -1.65%
39 -1.69%
40 1.20%
41 1.78%
42 -3.49%
43 0.23%
44 0.93%
AH
45 1.39%
46 3.79%
47 3.19%
48 -2.56%
49 1.87%
50 -1.93%
51 -2.03%
52 2.95%
53 -0.01%
54 3.53%
55 -1.13%
56 0.69%
57 -1.79%
58 3.46%
59 -0.10%
60 2.51%
61 0.05%
62 1.10%
63 1.21%
64 -3.14%
65 0.01%
66 0.51%
67 2.11%
68 2.43%
69 3.10%
70 1.63%
71 1.25%
72 1.40%
73 -2.21%
74 0.99%
75 1.60%
A B C
1
REGRESSING THE DJ30 COMPONENTS ON THE S&P500
Averages
2 Average alpha -0.0005 #VALUE!
3 Average beta 1.1421 #VALUE!
4 Average r-squared 0.3508 #VALUE!
5 Average t-statistic, intercept #VALUE! #VALUE!
6 Average t-statistic, slope #VALUE! #VALUE!
A B
1 REGRESSING PORTFOLIOS OF THE DJ30 COMPONENTS ON THE S&P5
2
Alpha -0.0020
3
Beta 1.1747
4
R-squared 0.8191
5
T-Alpha #VALUE!
6
T-Beta #VALUE!
7
8 Portfolio weights
9 AA 0.1000
10 AIG 0.0000
11 AXP 0.0000
12 BA 0.0000
13 C 0.1000
14 CAT 0.0000
15 DD 0.1000
16 DIS 0.1000
17 GE 0.0000
18 GM 0.0000
19 HD 0.0000
20 HON 0.0000
21 HPQ 0.0000
22 IBM 0.0000
23 INTC 0.1000
24 JNJ 0.0000
25 JPM 0.0000
26 KO 0.1000
27 MCD 0.0000
28 MMM 0.1000
29 MO 0.0000
30 MRK 0.1000
31 MSFT 0.0000
32 PFE 0.0000
33 PG 0.0000
34 T 0.0000
35 UTX 0.0000
36 VZ 0.1000
37 WMT 0.0000
38 XOM 0.1000
39 Sum of portfolio weights 1.00
C
ING PORTFOLIOS
1 OF THE DJ30 COMPONENTS ON THE S&P500
2 #VALUE!
3 #VALUE!
4 #VALUE!
5 #VALUE!
6 #VALUE!
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 #VALUE!
A B
1 REGRESSING PORTFOLIOS OF THE DJ30 COMPONENTS ON THE S&P5
2
Alpha -0.0005
3
Beta 1.1421
4
R-squared 0.9460
5
T-Alpha #VALUE!
6
T-Beta #VALUE!
7
8 Portfolio weights
9 AA 0.0333
10 AIG 0.0333
11 AXP 0.0333
12 BA 0.0333
13 C 0.0333
14 CAT 0.0333
15 DD 0.0333
16 DIS 0.0333
17 GE 0.0333
18 GM 0.0333
19 HD 0.0333
20 HON 0.0333
21 HPQ 0.0333
22 IBM 0.0333
23 INTC 0.0333
24 JNJ 0.0333
25 JPM 0.0333
26 KO 0.0333
27 MCD 0.0333
28 MMM 0.0333
29 MO 0.0333
30 MRK 0.0333
31 MSFT 0.0333
32 PFE 0.0333
33 PG 0.0333
34 T 0.0333
35 UTX 0.0333
36 VZ 0.0333
37 WMT 0.0333
38 XOM 0.0333
39 Sum of portfolio weights 1.00
C
ING PORTFOLIOS
1 OF THE DJ30 COMPONENTS ON THE S&P500
2 #VALUE!
3 #VALUE!
4 #VALUE!
5 #VALUE!
6 #VALUE!
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 #VALUE!
Title: 3-Month Treasury Bill: Secondary Market Rate
Series ID: TB3MS
Source: Board of Governors of the Federal Reserve System
Release: H.15 Selected Interest Rates
Seasonal Adjustment: Not Applicable
Frequency: Monthly
Units: Percent
Date Range: 1934-01-01 to 2006-07-01
Last Updated: 2006-08-08 9:12 AM CT
Notes: Averages of Business Days, Discount Basis
DATE VALUE
1934-01-01 0.72
1934-02-01 0.62
1934-03-01 0.24
1934-04-01 0.15
1934-05-01 0.16
1934-06-01 0.15
1934-07-01 0.15
1934-08-01 0.19
1934-09-01 0.21
1934-10-01 0.27
1934-11-01 0.25
1934-12-01 0.23
1935-01-01 0.20
1935-02-01 0.19
1935-03-01 0.15
1935-04-01 0.15
1935-05-01 0.15
1935-06-01 0.15
1935-07-01 0.15
1935-08-01 0.16
1935-09-01 0.20
1935-10-01 0.20
1935-11-01 0.16
1935-12-01 0.15
1936-01-01 0.20
1936-02-01 0.20
1936-03-01 0.20
1936-04-01 0.20
1936-05-01 0.20
1936-06-01 0.20
1936-07-01 0.15
1936-08-01 0.20
1936-09-01 0.16
1936-10-01 0.13
1936-11-01 0.11
1936-12-01 0.12
1937-01-01 0.17
1937-02-01 0.15
1937-03-01 0.38
1937-04-01 0.56
1937-05-01 0.41
1937-06-01 0.36
1937-07-01 0.28
1937-08-01 0.29
1937-09-01 0.31
1937-10-01 0.20
1937-11-01 0.09
1937-12-01 0.11
1938-01-01 0.10
1938-02-01 0.08
1938-03-01 0.08
1938-04-01 0.09
1938-05-01 0.05
1938-06-01 0.05
1938-07-01 0.07
1938-08-01 0.06
1938-09-01 0.08
1938-10-01 0.05
1938-11-01 0.04
1938-12-01 0.03
1939-01-01 0.03
1939-02-01 0.03
1939-03-01 0.03
1939-04-01 0.03
1939-05-01 0.03
1939-06-01 0.03
1939-07-01 0.04
1939-08-01 0.05
1939-09-01 0.14
1939-10-01 0.05
1939-11-01 0.05
1939-12-01 0.04
1940-01-01 0.01
1940-02-01 0.02
1940-03-01 0.02
1940-04-01 0.02
1940-05-01 0.06
1940-06-01 0.10
1940-07-01 0.05
1940-08-01 0.04
1940-09-01 0.05
1940-10-01 0.02
1940-11-01 0.02
1940-12-01 0.02
1941-01-01 0.02
1941-02-01 0.04
1941-03-01 0.11
1941-04-01 0.10
1941-05-01 0.11
1941-06-01 0.12
1941-07-01 0.12
1941-08-01 0.13
1941-09-01 0.10
1941-10-01 0.09
1941-11-01 0.28
1941-12-01 0.33
1942-01-01 0.27
1942-02-01 0.25
1942-03-01 0.25
1942-04-01 0.32
1942-05-01 0.37
1942-06-01 0.37
1942-07-01 0.38
1942-08-01 0.38
1942-09-01 0.38
1942-10-01 0.38
1942-11-01 0.38
1942-12-01 0.38
1943-01-01 0.38
1943-02-01 0.38
1943-03-01 0.38
1943-04-01 0.38
1943-05-01 0.38
1943-06-01 0.38
1943-07-01 0.38
1943-08-01 0.38
1943-09-01 0.38
1943-10-01 0.38
1943-11-01 0.38
1943-12-01 0.38
1944-01-01 0.38
1944-02-01 0.38
1944-03-01 0.38
1944-04-01 0.38
1944-05-01 0.38
1944-06-01 0.38
1944-07-01 0.38
1944-08-01 0.38
1944-09-01 0.38
1944-10-01 0.38
1944-11-01 0.38
1944-12-01 0.38
1945-01-01 0.38
1945-02-01 0.38
1945-03-01 0.38
1945-04-01 0.38
1945-05-01 0.38
1945-06-01 0.38
1945-07-01 0.38
1945-08-01 0.38
1945-09-01 0.38
1945-10-01 0.38
1945-11-01 0.38
1945-12-01 0.38
1946-01-01 0.38
1946-02-01 0.38
1946-03-01 0.38
1946-04-01 0.38
1946-05-01 0.38
1946-06-01 0.38
1946-07-01 0.38
1946-08-01 0.38
1946-09-01 0.38
1946-10-01 0.38
1946-11-01 0.38
1946-12-01 0.38
1947-01-01 0.38
1947-02-01 0.38
1947-03-01 0.38
1947-04-01 0.38
1947-05-01 0.38
1947-06-01 0.38
1947-07-01 0.66
1947-08-01 0.75
1947-09-01 0.80
1947-10-01 0.85
1947-11-01 0.92
1947-12-01 0.95
1948-01-01 0.97
1948-02-01 1.00
1948-03-01 1.00
1948-04-01 1.00
1948-05-01 1.00
1948-06-01 1.00
1948-07-01 1.00
1948-08-01 1.06
1948-09-01 1.09
1948-10-01 1.12
1948-11-01 1.14
1948-12-01 1.16
1949-01-01 1.17
1949-02-01 1.17
1949-03-01 1.17
1949-04-01 1.17
1949-05-01 1.17
1949-06-01 1.17
1949-07-01 1.02
1949-08-01 1.04
1949-09-01 1.07
1949-10-01 1.05
1949-11-01 1.08
1949-12-01 1.10
1950-01-01 1.07
1950-02-01 1.12
1950-03-01 1.12
1950-04-01 1.15
1950-05-01 1.16
1950-06-01 1.15
1950-07-01 1.16
1950-08-01 1.20
1950-09-01 1.30
1950-10-01 1.31
1950-11-01 1.36
1950-12-01 1.34
1951-01-01 1.34
1951-02-01 1.36
1951-03-01 1.40
1951-04-01 1.47
1951-05-01 1.55
1951-06-01 1.45
1951-07-01 1.56
1951-08-01 1.62
1951-09-01 1.63
1951-10-01 1.54
1951-11-01 1.56
1951-12-01 1.73
1952-01-01 1.57
1952-02-01 1.54
1952-03-01 1.59
1952-04-01 1.57
1952-05-01 1.67
1952-06-01 1.70
1952-07-01 1.81
1952-08-01 1.83
1952-09-01 1.71
1952-10-01 1.74
1952-11-01 1.85
1952-12-01 2.09
1953-01-01 1.96
1953-02-01 1.97
1953-03-01 2.01
1953-04-01 2.19
1953-05-01 2.16
1953-06-01 2.11
1953-07-01 2.04
1953-08-01 2.04
1953-09-01 1.79
1953-10-01 1.38
1953-11-01 1.44
1953-12-01 1.60
1954-01-01 1.18
1954-02-01 0.97
1954-03-01 1.03
1954-04-01 0.97
1954-05-01 0.76
1954-06-01 0.64
1954-07-01 0.72
1954-08-01 0.92
1954-09-01 1.01
1954-10-01 0.98
1954-11-01 0.93
1954-12-01 1.15
1955-01-01 1.22
1955-02-01 1.17
1955-03-01 1.28
1955-04-01 1.59
1955-05-01 1.45
1955-06-01 1.41
1955-07-01 1.60
1955-08-01 1.90
1955-09-01 2.07
1955-10-01 2.23
1955-11-01 2.24
1955-12-01 2.54
1956-01-01 2.41
1956-02-01 2.32
1956-03-01 2.25
1956-04-01 2.60
1956-05-01 2.61
1956-06-01 2.49
1956-07-01 2.31
1956-08-01 2.60
1956-09-01 2.84
1956-10-01 2.90
1956-11-01 2.99
1956-12-01 3.21
1957-01-01 3.11
1957-02-01 3.10
1957-03-01 3.08
1957-04-01 3.07
1957-05-01 3.06
1957-06-01 3.29
1957-07-01 3.16
1957-08-01 3.37
1957-09-01 3.53
1957-10-01 3.58
1957-11-01 3.31
1957-12-01 3.04
1958-01-01 2.44
1958-02-01 1.53
1958-03-01 1.30
1958-04-01 1.13
1958-05-01 0.91
1958-06-01 0.83
1958-07-01 0.91
1958-08-01 1.69
1958-09-01 2.44
1958-10-01 2.63
1958-11-01 2.67
1958-12-01 2.77
1959-01-01 2.82
1959-02-01 2.70
1959-03-01 2.80
1959-04-01 2.95
1959-05-01 2.84
1959-06-01 3.21
1959-07-01 3.20
1959-08-01 3.38
1959-09-01 4.04
1959-10-01 4.05
1959-11-01 4.15
1959-12-01 4.49
1960-01-01 4.35
1960-02-01 3.96
1960-03-01 3.31
1960-04-01 3.23
1960-05-01 3.29
1960-06-01 2.46
1960-07-01 2.30
1960-08-01 2.30
1960-09-01 2.48
1960-10-01 2.30
1960-11-01 2.37
1960-12-01 2.25
1961-01-01 2.24
1961-02-01 2.42
1961-03-01 2.39
1961-04-01 2.29
1961-05-01 2.29
1961-06-01 2.33
1961-07-01 2.24
1961-08-01 2.39
1961-09-01 2.28
1961-10-01 2.30
1961-11-01 2.48
1961-12-01 2.60
1962-01-01 2.72
1962-02-01 2.73
1962-03-01 2.72
1962-04-01 2.73
1962-05-01 2.69
1962-06-01 2.73
1962-07-01 2.92
1962-08-01 2.82
1962-09-01 2.78
1962-10-01 2.74
1962-11-01 2.83
1962-12-01 2.87
1963-01-01 2.91
1963-02-01 2.92
1963-03-01 2.89
1963-04-01 2.90
1963-05-01 2.93
1963-06-01 2.99
1963-07-01 3.18
1963-08-01 3.32
1963-09-01 3.38
1963-10-01 3.45
1963-11-01 3.52
1963-12-01 3.52
1964-01-01 3.52
1964-02-01 3.53
1964-03-01 3.54
1964-04-01 3.47
1964-05-01 3.48
1964-06-01 3.48
1964-07-01 3.46
1964-08-01 3.50
1964-09-01 3.53
1964-10-01 3.57
1964-11-01 3.64
1964-12-01 3.84
1965-01-01 3.81
1965-02-01 3.93
1965-03-01 3.93
1965-04-01 3.93
1965-05-01 3.89
1965-06-01 3.80
1965-07-01 3.84
1965-08-01 3.84
1965-09-01 3.92
1965-10-01 4.03
1965-11-01 4.09
1965-12-01 4.38
1966-01-01 4.59
1966-02-01 4.65
1966-03-01 4.59
1966-04-01 4.62
1966-05-01 4.64
1966-06-01 4.50
1966-07-01 4.80
1966-08-01 4.96
1966-09-01 5.37
1966-10-01 5.35
1966-11-01 5.32
1966-12-01 4.96
1967-01-01 4.72
1967-02-01 4.56
1967-03-01 4.26
1967-04-01 3.84
1967-05-01 3.60
1967-06-01 3.54
1967-07-01 4.21
1967-08-01 4.27
1967-09-01 4.42
1967-10-01 4.56
1967-11-01 4.73
1967-12-01 4.97
1968-01-01 5.00
1968-02-01 4.98
1968-03-01 5.17
1968-04-01 5.38
1968-05-01 5.66
1968-06-01 5.52
1968-07-01 5.31
1968-08-01 5.09
1968-09-01 5.19
1968-10-01 5.35
1968-11-01 5.45
1968-12-01 5.96
1969-01-01 6.14
1969-02-01 6.12
1969-03-01 6.02
1969-04-01 6.11
1969-05-01 6.04
1969-06-01 6.44
1969-07-01 7.00
1969-08-01 6.98
1969-09-01 7.09
1969-10-01 7.00
1969-11-01 7.24
1969-12-01 7.82
1970-01-01 7.87
1970-02-01 7.13
1970-03-01 6.63
1970-04-01 6.51
1970-05-01 6.84
1970-06-01 6.68
1970-07-01 6.45
1970-08-01 6.41
1970-09-01 6.12
1970-10-01 5.91
1970-11-01 5.28
1970-12-01 4.87
1971-01-01 4.44
1971-02-01 3.70
1971-03-01 3.38
1971-04-01 3.86
1971-05-01 4.14
1971-06-01 4.75
1971-07-01 5.40
1971-08-01 4.94
1971-09-01 4.69
1971-10-01 4.46
1971-11-01 4.22
1971-12-01 4.01
1972-01-01 3.38
1972-02-01 3.20
1972-03-01 3.73
1972-04-01 3.71
1972-05-01 3.69
1972-06-01 3.91
1972-07-01 3.98
1972-08-01 4.02
1972-09-01 4.66
1972-10-01 4.74
1972-11-01 4.78
1972-12-01 5.07
1973-01-01 5.41
1973-02-01 5.60
1973-03-01 6.09
1973-04-01 6.26
1973-05-01 6.36
1973-06-01 7.19
1973-07-01 8.01
1973-08-01 8.67
1973-09-01 8.29
1973-10-01 7.22
1973-11-01 7.83
1973-12-01 7.45
1974-01-01 7.77
1974-02-01 7.12
1974-03-01 7.96
1974-04-01 8.33
1974-05-01 8.23
1974-06-01 7.90
1974-07-01 7.55
1974-08-01 8.96
1974-09-01 8.06
1974-10-01 7.46
1974-11-01 7.47
1974-12-01 7.15
1975-01-01 6.26
1975-02-01 5.50
1975-03-01 5.49
1975-04-01 5.61
1975-05-01 5.23
1975-06-01 5.34
1975-07-01 6.13
1975-08-01 6.44
1975-09-01 6.42
1975-10-01 5.96
1975-11-01 5.48
1975-12-01 5.44
1976-01-01 4.87
1976-02-01 4.88
1976-03-01 5.00
1976-04-01 4.86
1976-05-01 5.20
1976-06-01 5.41
1976-07-01 5.23
1976-08-01 5.14
1976-09-01 5.08
1976-10-01 4.92
1976-11-01 4.75
1976-12-01 4.35
1977-01-01 4.62
1977-02-01 4.67
1977-03-01 4.60
1977-04-01 4.54
1977-05-01 4.96
1977-06-01 5.02
1977-07-01 5.19
1977-08-01 5.49
1977-09-01 5.81
1977-10-01 6.16
1977-11-01 6.10
1977-12-01 6.07
1978-01-01 6.44
1978-02-01 6.45
1978-03-01 6.29
1978-04-01 6.29
1978-05-01 6.41
1978-06-01 6.73
1978-07-01 7.01
1978-08-01 7.08
1978-09-01 7.85
1978-10-01 7.99
1978-11-01 8.64
1978-12-01 9.08
1979-01-01 9.35
1979-02-01 9.32
1979-03-01 9.48
1979-04-01 9.46
1979-05-01 9.61
1979-06-01 9.06
1979-07-01 9.24
1979-08-01 9.52
1979-09-01 10.26
1979-10-01 11.70
1979-11-01 11.79
1979-12-01 12.04
1980-01-01 12.00
1980-02-01 12.86
1980-03-01 15.20
1980-04-01 13.20
1980-05-01 8.58
1980-06-01 7.07
1980-07-01 8.06
1980-08-01 9.13
1980-09-01 10.27
1980-10-01 11.62
1980-11-01 13.73
1980-12-01 15.49
1981-01-01 15.02
1981-02-01 14.79
1981-03-01 13.36
1981-04-01 13.69
1981-05-01 16.30
1981-06-01 14.73
1981-07-01 14.95
1981-08-01 15.51
1981-09-01 14.70
1981-10-01 13.54
1981-11-01 10.86
1981-12-01 10.85
1982-01-01 12.28
1982-02-01 13.48
1982-03-01 12.68
1982-04-01 12.70
1982-05-01 12.09
1982-06-01 12.47
1982-07-01 11.35
1982-08-01 8.68
1982-09-01 7.92
1982-10-01 7.71
1982-11-01 8.07
1982-12-01 7.94
1983-01-01 7.86
1983-02-01 8.11
1983-03-01 8.35
1983-04-01 8.21
1983-05-01 8.19
1983-06-01 8.79
1983-07-01 9.08
1983-08-01 9.34
1983-09-01 9.00
1983-10-01 8.64
1983-11-01 8.76
1983-12-01 9.00
1984-01-01 8.90
1984-02-01 9.09
1984-03-01 9.52
1984-04-01 9.69
1984-05-01 9.83
1984-06-01 9.87
1984-07-01 10.12
1984-08-01 10.47
1984-09-01 10.37
1984-10-01 9.74
1984-11-01 8.61
1984-12-01 8.06
1985-01-01 7.76
1985-02-01 8.27
1985-03-01 8.52
1985-04-01 7.95
1985-05-01 7.48
1985-06-01 6.95
1985-07-01 7.08
1985-08-01 7.14
1985-09-01 7.10
1985-10-01 7.16
1985-11-01 7.24
1985-12-01 7.10
1986-01-01 7.07
1986-02-01 7.06
1986-03-01 6.56
1986-04-01 6.06
1986-05-01 6.15
1986-06-01 6.21
1986-07-01 5.83
1986-08-01 5.53
1986-09-01 5.21
1986-10-01 5.18
1986-11-01 5.35
1986-12-01 5.53
1987-01-01 5.43
1987-02-01 5.59
1987-03-01 5.59
1987-04-01 5.64
1987-05-01 5.66
1987-06-01 5.67
1987-07-01 5.69
1987-08-01 6.04
1987-09-01 6.40
1987-10-01 6.13
1987-11-01 5.69
1987-12-01 5.77
1988-01-01 5.81
1988-02-01 5.66
1988-03-01 5.70
1988-04-01 5.91
1988-05-01 6.26
1988-06-01 6.46
1988-07-01 6.73
1988-08-01 7.06
1988-09-01 7.24
1988-10-01 7.35
1988-11-01 7.76
1988-12-01 8.07
1989-01-01 8.27
1989-02-01 8.53
1989-03-01 8.82
1989-04-01 8.65
1989-05-01 8.43
1989-06-01 8.15
1989-07-01 7.88
1989-08-01 7.90
1989-09-01 7.75
1989-10-01 7.64
1989-11-01 7.69
1989-12-01 7.63
1990-01-01 7.64
1990-02-01 7.74
1990-03-01 7.90
1990-04-01 7.77
1990-05-01 7.74
1990-06-01 7.73
1990-07-01 7.62
1990-08-01 7.45
1990-09-01 7.36
1990-10-01 7.17
1990-11-01 7.06
1990-12-01 6.74
1991-01-01 6.22
1991-02-01 5.94
1991-03-01 5.91
1991-04-01 5.65
1991-05-01 5.46
1991-06-01 5.57
1991-07-01 5.58
1991-08-01 5.33
1991-09-01 5.22
1991-10-01 4.99
1991-11-01 4.56
1991-12-01 4.07
1992-01-01 3.80
1992-02-01 3.84
1992-03-01 4.04
1992-04-01 3.75
1992-05-01 3.63
1992-06-01 3.66
1992-07-01 3.21
1992-08-01 3.13
1992-09-01 2.91
1992-10-01 2.86
1992-11-01 3.13
1992-12-01 3.22
1993-01-01 3.00
1993-02-01 2.93
1993-03-01 2.95
1993-04-01 2.87
1993-05-01 2.96
1993-06-01 3.07
1993-07-01 3.04
1993-08-01 3.02
1993-09-01 2.95
1993-10-01 3.02
1993-11-01 3.10
1993-12-01 3.06
1994-01-01 2.98
1994-02-01 3.25
1994-03-01 3.50
1994-04-01 3.68
1994-05-01 4.14
1994-06-01 4.14
1994-07-01 4.33
1994-08-01 4.48
1994-09-01 4.62
1994-10-01 4.95
1994-11-01 5.29
1994-12-01 5.60
1995-01-01 5.71
1995-02-01 5.77
1995-03-01 5.73
1995-04-01 5.65
1995-05-01 5.67
1995-06-01 5.47
1995-07-01 5.42
1995-08-01 5.40
1995-09-01 5.28
1995-10-01 5.28
1995-11-01 5.36
1995-12-01 5.14
1996-01-01 5.00
1996-02-01 4.83
1996-03-01 4.96
1996-04-01 4.95
1996-05-01 5.02
1996-06-01 5.09
1996-07-01 5.15
1996-08-01 5.05
1996-09-01 5.09
1996-10-01 4.99
1996-11-01 5.03
1996-12-01 4.91
1997-01-01 5.03
1997-02-01 5.01
1997-03-01 5.14
1997-04-01 5.16
1997-05-01 5.05
1997-06-01 4.93
1997-07-01 5.05
1997-08-01 5.14
1997-09-01 4.95
1997-10-01 4.97
1997-11-01 5.14
1997-12-01 5.16
1998-01-01 5.04
1998-02-01 5.09
1998-03-01 5.03
1998-04-01 4.95
1998-05-01 5.00
1998-06-01 4.98
1998-07-01 4.96
1998-08-01 4.90
1998-09-01 4.61
1998-10-01 3.96
1998-11-01 4.41
1998-12-01 4.39
1999-01-01 4.34
1999-02-01 4.44
1999-03-01 4.44
1999-04-01 4.29
1999-05-01 4.50
1999-06-01 4.57
1999-07-01 4.55
1999-08-01 4.72
1999-09-01 4.68
1999-10-01 4.86
1999-11-01 5.07
1999-12-01 5.20
2000-01-01 5.32
2000-02-01 5.55
2000-03-01 5.69
2000-04-01 5.66
2000-05-01 5.79
2000-06-01 5.69
2000-07-01 5.96
2000-08-01 6.09
2000-09-01 6.00
2000-10-01 6.11
2000-11-01 6.17
2000-12-01 5.77
2001-01-01 5.15
2001-02-01 4.88
2001-03-01 4.42
2001-04-01 3.87
2001-05-01 3.62
2001-06-01 3.49
2001-07-01 3.51
2001-08-01 3.36
2001-09-01 2.64
2001-10-01 2.16
2001-11-01 1.87
2001-12-01 1.69
2002-01-01 1.65
2002-02-01 1.73
2002-03-01 1.79
2002-04-01 1.72
2002-05-01 1.73
2002-06-01 1.70
2002-07-01 1.68
2002-08-01 1.62
2002-09-01 1.63
2002-10-01 1.58
2002-11-01 1.23
2002-12-01 1.19
2003-01-01 1.17
2003-02-01 1.17
2003-03-01 1.13
2003-04-01 1.13
2003-05-01 1.07
2003-06-01 0.92
2003-07-01 0.90
2003-08-01 0.95
2003-09-01 0.94
2003-10-01 0.92
2003-11-01 0.93
2003-12-01 0.90
2004-01-01 0.88
2004-02-01 0.93
2004-03-01 0.94
2004-04-01 0.94
2004-05-01 1.02
2004-06-01 1.27
2004-07-01 1.33
2004-08-01 1.48
2004-09-01 1.65
2004-10-01 1.76
2004-11-01 2.07
2004-12-01 2.19
2005-01-01 2.33
2005-02-01 2.54
2005-03-01 2.74
2005-04-01 2.78
2005-05-01 2.84
2005-06-01 2.97
2005-07-01 3.22
2005-08-01 3.44
2005-09-01 3.42
2005-10-01 3.71
2005-11-01 3.88
2005-12-01 3.89
2006-01-01 4.24
2006-02-01 4.43
2006-03-01 4.51
2006-04-01 4.60
2006-05-01 4.72
2006-06-01 4.79
2006-07-01 4.95
KRAFT: CASH FLOWS TO EQUITY HOLDERS, 2001 - 2005
2005/12/31 2004/12/31
Repurchase of Class A common stock $1,175,000,000 $688,000,000
Dividends paid $1,437,000,000 $1,280,000,000
Net proceeds from Class A common stock
Cash flow to equity holders $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 $525,000,000 ($1,056,000,000)
activities
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
Net (repayment) issuance of short-term ($1,005,000,000) ($635,000,000)
borrowings
Long-term debt proceeds $69,000,000 $832,000,000
Long-term debt repaid ($775,000,000) ($842,000,000)
Repayment of notes payable to Altria Group,
Inc. and affiliates
Increase (decrease) in amounts due to $107,000,000 ($585,000,000)
Altria Group, Inc. and affiliates
Repurchase of Class A common stock ($1,175,000,000) ($688,000,000)
Dividends paid ($1,437,000,000) ($1,280,000,000)
Other $265,000,000 ($20,000,000)
Net cash used in financing activities ($3,951,000,000) ($3,218,000,000)
Effect of exchange rate changes on cash and ($4,000,000) $34,000,000
cash equivalents
Cash and cash equivalents:
Increase (decrease) $34,000,000 ($232,000,000)
Balance at beginning of year $282,000,000 $514,000,000
Balance at end of year $316,000,000 $282,000,000
Cash paid:
Interest $679,000,000 $633,000,000
Income taxes $1,957,000,000 $1,610,000,000
2003/12/31 2002/12/31 2001/12/31
$372,000,000 $372,000,000 $170,000,000
$1,089,000,000 $936,000,000 $225,000,000
$8,425,000,000
$1,461,000,000 ($7,117,000,000) $395,000,000
2003/12/31 2003/12/31
Cash Provided By (Used In) Operating Activities
Net earnings $3,476,000,000
$3,476,000,000 Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization $813,000,000
$813,000,000 Deferred income tax provision $244,000,000
$244,000,000 Gains on sales of businesses ($31,000,000)
($31,000,000) Integration costs and a loss on sale of ($26,000,000)
Asset impairment and exit costs, net of $6,000,000
($26,000,000) Cash effects of changes, net of the effects from acquired and divested companies:
Receivables, net ($45,000,000)
Inventories $197,000,000
Accounts payable ($116,000,000)
$6,000,000 Income taxes ($125,000,000)
Amounts due to Altria Group, Inc. and a $169,000,000
Other working capital items ($167,000,000)
($45,000,000) Change in pension assets and postretire ($419,000,000)
$197,000,000 Other $143,000,000
($116,000,000) Net cash provided by operating activit $4,119,000,000
($125,000,000) Cash Provided By (Used In) Investing Activities
$169,000,000 Capital expenditures ($1,085,000,000)
Purchases of businesses, net of acquire ($98,000,000)
($167,000,000) Proceeds from sales of businesses $96,000,000
($419,000,000) Other $38,000,000
Net cash used in investing activities ($1,049,000,000)
$143,000,000 Cash Provided By (Used In) Financing Activities
$4,119,000,000 Net issuance (repayment) of short-term $819,000,000
Long-term debt proceeds $1,577,000,000
Long-term debt repaid ($491,000,000)
Repayment of notes payable to Altria Grou ($2,757,000,000)
($1,085,000,000) (Decrease) increase in amounts due to Alt ($525,000,000)
($98,000,000) Repurchase of Class A common stock ($372,000,000)
Dividends paid ($1,089,000,000)
$96,000,000 Net proceeds from sale of Class A common stock
$38,000,000 Other $52,000,000
($1,049,000,000) Net cash used in financing activities ($2,786,000,000)
Effect of exchange rate changes on cash $15,000,000
Increase (decrease) $299,000,000
$819,000,000 Balance at beginning of year $215,000,000
Balance at end of year $514,000,000
$1,577,000,000 Cash paid:
($491,000,000) Interest $642,000,000
($2,757,000,000) Income taxes $1,726,000,000
($525,000,000)
($372,000,000) Repurchase of Class A common stock ($372,000,000)

($1,089,000,000) Dividends paid ($1,089,000,000)
$52,000,000 Net proceeds from sale of Class A common stock
($2,786,000,000)
$15,000,000
$299,000,000
$215,000,000
$514,000,000
$642,000,000
$1,726,000,000
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) ($1,101,000,000)
($122,000,000) ($194,000,000)
$219,000,000 $21,000,000
$35,000,000 $52,000,000
($1,052,000,000) ($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) ($2,131,000,000)
$1,000,000 ($4,000,000)
$53,000,000 ($29,000,000)
$162,000,000 $191,000,000
$215,000,000 $162,000,000
$825,000,000 $1,433,000,000
$1,368,000,000 $1,058,000,000
($170,000,000)
($936,000,000) ($225,000,000)
$8,425,000,000
KRAFT FOODS INC 10-K 2005-12-31: Balance Sheet
2005/12/31
ASSETS
Cash and cash equivalents $316,000,000
Receivables (less allowances of $92 in 2005 and $118 $3,385,000,000
in 2004)
Inventories:
Raw materials $1,363,000,000
Finished product $1,980,000,000
$3,343,000,000
Deferred income taxes $879,000,000
Assets of discontinued operations held for sale
Other current assets $230,000,000
Total current assets $8,153,000,000
Property, plant and equipment, at cost:
Land and land improvements $388,000,000
Buildings and building equipment $3,551,000,000
Machinery and equipment $12,008,000,000
Construction in progress $651,000,000
$16,598,000,000
Less accumulated depreciation $6,781,000,000
$9,817,000,000
Goodwill $24,648,000,000
Other intangible assets, net $10,516,000,000
Prepaid pension assets $3,617,000,000
Other assets $877,000,000
TOTAL ASSETS $57,628,000,000
LIABILITIES
Short-term borrowings $805,000,000
Current portion of long-term debt $1,268,000,000
Due to Altria Group, Inc. and affiliates $652,000,000
Accounts payable $2,270,000,000
Accrued liabilities:
Marketing $1,529,000,000
Employment costs $625,000,000
Other $1,338,000,000
Income taxes $237,000,000
Total current liabilities $8,724,000,000
Long-term debt $8,475,000,000
Deferred income taxes $6,067,000,000
Accrued postretirement health care costs $1,931,000,000
Other liabilities $2,838,000,000
Total liabilities $28,035,000,000
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 $23,835,000,000
Earnings reinvested in the business $9,453,000,000
Accumulated other comprehensive losses (including ($1,663,000,000)
currency translation of $(1,290) in 2005 and $(890) in 2004)
$31,625,000,000
Less cost of repurchased stock (65,119,245 Class A ($2,032,000,000)
shares in 2005 and 29,644,926 Class A shares in 2004)
Total shareholders' equity $29,593,000,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $57,628,000,000
2005/12/31
Net revenues $34,113,000,000
Cost of sales $21,845,000,000
Gross profit $12,268,000,000
Marketing, administration and research costs $7,135,000,000
Asset impairment and exit costs $479,000,000
(Gains) losses on sales of businesses, net ($108,000,000)
Amortization of intangibles $10,000,000
Operating income $4,752,000,000
Interest and other debt expense, net $636,000,000
Earnings from continuing operations before $4,116,000,000
income taxes and minority interest
Provision for income taxes $1,209,000,000
Earnings from continuing operations before $2,907,000,000
minority interest
Minority interest in earnings from $3,000,000
continuing operations, net
Earnings from continuing operations $2,904,000,000
(Loss) earnings from discontinued ($272,000,000)
operations, net of income taxes
Per share data:
Basic earnings per share:
Continuing operations $1,720,000
Discontinued operations ($160,000)
Net earnings $1,560,000
Diluted earnings per share:
Continuing operations $1,720,000
Discontinued operations ($170,000)
Net earnings $1,550,000
2005/12/31
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization $879,000,000
Deferred income tax (benefit) provision ($408,000,000)
(Gains) losses on sales of businesses, ($108,000,000)
net
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
Cash effects of changes, net of the effects from acquired and divested companies:
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
Other working capital items ($432,000,000)
Change in pension assets and ($10,000,000)
postretirement liabilities, net
Other $228,000,000
Net cash provided by operating $3,464,000,000
activities
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Capital expenditures ($1,171,000,000)
Purchases of businesses, net of acquired
cash
Proceeds from sales of businesses $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
Long-term debt proceeds $69,000,000
Long-term debt repaid ($775,000,000)
Repayment of notes payable to Altria Group,
Inc. and affiliates
Increase (decrease) in amounts due to $107,000,000
Altria Group, Inc. and affiliates
Repurchase of Class A common stock ($1,175,000,000)
Dividends paid ($1,437,000,000)
Other $265,000,000
Net cash used in financing activities ($3,951,000,000)
Effect of exchange rate changes on cash and ($4,000,000)
cash equivalents
Increase (decrease) $34,000,000
Balance at beginning of year $282,000,000
Balance at end of year $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 29.37%
Shares outstanding (from equity in balance sheet)

Class A 555,000,000
Class B 1,180,000,000
Repurchased 65,119,245
Total 1,669,880,755
Note: Yahoo shows 1.66B shares

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 2003/12/31
$32,168,000,000 $30,498,000,000
$20,281,000,000 $18,531,000,000
$11,887,000,000 $11,967,000,000
$6,658,000,000 $6,123,000,000
$603,000,000 $6,000,000
$3,000,000 ($31,000,000)
$11,000,000 $9,000,000
$4,612,000,000 $5,860,000,000
$666,000,000 $665,000,000
$3,946,000,000 $5,195,000,000
$1,274,000,000 $1,812,000,000
$2,672,000,000 $3,383,000,000
$3,000,000 $4,000,000
$2,669,000,000 $3,379,000,000
($4,000,000) $97,000,000
$2,665,000,000 $3,476,000,000
$1,560,000 $1,950,000
$60,000
$1,560,000 $2,010,000
$1,550,000 $1,950,000
$60,000
$1,550,000 $2,010,000
2004/12/31 2003/12/31
$2,665,000,000 $3,476,000,000
$879,000,000 $813,000,000
$41,000,000 $244,000,000
$3,000,000 ($31,000,000)
($1,000,000) ($26,000,000)
$107,000,000
$493,000,000 $6,000,000
$23,000,000 ($45,000,000)
($65,000,000) $197,000,000
$152,000,000 ($116,000,000)
($251,000,000) ($125,000,000)
$74,000,000 $169,000,000
$90,000,000 ($167,000,000)
($436,000,000) ($419,000,000)
$234,000,000 $143,000,000
$4,008,000,000 $4,119,000,000
($1,006,000,000) ($1,085,000,000)
($137,000,000) ($98,000,000)
$18,000,000 $96,000,000
$69,000,000 $38,000,000
($1,056,000,000) ($1,049,000,000)
($635,000,000) $819,000,000
$832,000,000 $1,577,000,000
($842,000,000) ($491,000,000)
($2,757,000,000)
($585,000,000) ($525,000,000)
($688,000,000) ($372,000,000)
($1,280,000,000) ($1,089,000,000)
($20,000,000) $52,000,000
($3,218,000,000) ($2,786,000,000)
$34,000,000 $15,000,000
($232,000,000) $299,000,000
$514,000,000 $215,000,000
$282,000,000 $514,000,000
$633,000,000 $642,000,000
$1,610,000,000 $1,726,000,000
Technology Centre.
edgarscan_disclaimer.html
32.29% 34.88%
555,000,000
1,180,000,000
29,644,926
1,705,355,074
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 $337,000,000
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation $458,000,000 $427,000,000
Amortization $32,000,000 $31,000,000
Plant closing related cha $28,000,000 $22,000,000
Impairment and write-d $46,000,000 $0
Deferred taxes $8,000,000 $113,000,000
Other $4,000,000 $36,000,000
(Increase) decrease in a $67,000,000 ($179,000,000)
receivable
(Increase) decrease in i ($65,000,000) ($78,000,000)
Increase in trade accou $109,000,000 $60,000,000
Net change in other cu ($158,000,000) $51,000,000
liabilities
Cash Provided by Operating A $932,000,000 $820,000,000
Cash Flows From Investing Activities:
Additions to property, plan ($486,000,000) ($402,000,000)
Proceeds from sale of assets$27,000,000 $30,000,000
Purchases of marketable secu ($99,000,000) $0
Proceeds from marketable s $0 $0
Net change in other assets ($42,000,000) $11,000,000
Cash Used for Investing Activit
($600,000,000) ($361,000,000)
Cash Flows From Financing Activities:
Payments of debt, net ($242,000,000) ($387,000,000)
Proceeds from borrowings of $0 $0
Purchase of treasury shares ($72,000,000) ($41,000,000)
Dividends ($55,000,000) ($54,000,000)
Stock options exercised and $43,000,000 $0
Cash Used for Financing Activi
($326,000,000) ($482,000,000)
Effect of Exchange Rate Cha $2,000,000 ($3,000,000)
Increase (Decrease) in Cash $8,000,000 ($26,000,000)
Equivalents
Cash and Cash Equivalents $25,000,000 $51,000,000
Cash and Cash Equivalents $33,000,000 $25,000,000
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 payab $60,000,000 ($30,000,000) $89,000,000
Net change in other current assets and liabili $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 Equivalen ($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
2005 2004
Cash and cash equivalents 40,000,000 33,000,000
Current debt 126,000,000 338,000,000
Long term debt 2,869,000,000 3,024,000,000
Interest paid 227,000,000
2005 2004 2003

Sales $26,014 $26,441 $24,549
Cost of Sales 24,274 24,550 22,805
1,740 1,891 1,744
Operating Expenses:
Selling, general and administrative 928 880 831
Other charges 47 86 76
Operating Income 765 925 837
Other Expense:
Interest 227 275 296
Other 10 15 18
237 290 314
Income Before Income Taxes 528 635 523

Provision for Income Taxes 156 232 186
Net Income $372 $403 $337
Tax rate 29.55% 36.54% 35.56%
Weighted Average Shares Outstanding:

Class A Basic 243 243 244
Class B Basic 102 102 102
Diluted 357 357 352
Earnings Per Share:
Class A Basic $1.11 $1.20 $1.00
Class B Basic $1.00 $1.08 $0.90
Diluted $1.04 $1.13 $0.96
2005 2004
Assets
Current Assets:
Cash and cash equivalents $40 $33
Accounts receivable, net 1,214 1,240
Inventories 2,062 2,063
Other current assets 169 196
Total Current Assets 3,485 3,532
Net Property, Plant and Equipment 4,007 3,964
Goodwill 2,502 2,558
Intangible Assets 142 149
Other Assets 368 261
Total Assets $10,504 $10,464
Liabilities and Shareholders Equity

Current Liabilities:
Current debt $126 $338
Trade accounts payable 961 945
Other current liabilities 1,070 1,010
Total Current Liabilities 2,157 2,293
Long-Term Debt 2,869 3,024
Deferred Income Taxes 638 695
Other Liabilities 169 160
Shareholders Equity:
Common stock ($0.10 par value):
Class A-authorized 900 million shares:
issued 268 million shares in 2005 and 27 27
2004
Class B-authorized 900 million shares:
issued 102 million shares in 2005 and 10 10
2004
Capital in excess of par value 1,867 1,849
Retained earnings 3,032 2,728
Accumulated other comprehensive income (loss ) 28 -12
4,964 4,602
Less treasury stock, at cost-
15 million shares in 2005 and 17 million 238 264
shares in 2004
Less unamortized deferred compensation 55 46
Total Shareholders Equity 4,671 4,292
Total Liabilities and Shareholders Equity $10,504 $10,464
CASCADE CORPORATION: CASH FLOWS TO EQUITY
2006/01/31 2005/01/31 2004/01/31 2003/01/31 2002/01/31
Dividends $6,691,000 $5,478,000 $4,936,000 $1,200,000 $0
Share repurchases $0 $1,396,000 $1,354,000
Shares issued $2,787,000 $1,616,000 $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:
Depreciation and amortization $16,005,000 $14,570,000 $12,664,000
Share-based compensation $2,278,000 $2,492,000 $0
Deferred income taxes ($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 expense $2,378,000 $8,342,000 $538,000
Current income tax payable and receiva $245,000 $2,210,000 $3,415,000
Other assets and liabilities $222,000 $728,000 $1,221,000
Net cash provided by operating activitie $50,425,000 $37,808,000 $26,241,000
Cash flows from investing activities:
Capital expenditures ($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)
Proceeds from sale of assets $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 ($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-bas $2,787,000 $1,616,000 $1,299,000
plans
Excess tax benefit from exercise of sha $1,183,000 $340,000 $166,000
compensation awards
Net cash used in financing activities ($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 $30,482,000 $25,584,000 $29,501,000
Cash and cash equivalents at end of pe $35,493,000 $30,482,000 $25,584,000
Supplemental disclosure of noncash information:
2001/01/31 2000/01/31
$2,448,000 $5,321,000
$0 $1,844,000
2004/01/31 2003/01/31 2002/01/31

Net income $18,506,000 $17,707,000 $4,127,000
Deferred income taxes $1,802,000 $2,395,000 ($5,646,000)
Loss on disposition of assets $102,000 $54,000 $101,000
Income from discontinued operation $0 $0 ($485,000)
of income taxes
Loss on sale of discontinued opera $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
Prepaid expenses and other $3,619,000 ($4,149,000) ($39,000)
Accounts payable and accrued ex $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 opera $26,407,000 $23,941,000 $31,715,000
Cash provided by discontinued ope $0 $0 $3,121,000
Net cash provided by operating $26,407,000 $23,941,000 $34,836,000
activities
Proceeds from sale of assets $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, ($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 discontinue $0 $0 $3,250,000
operations
Cash used in continuing operation ($19,612,000) ($7,718,000) ($2,520,000)
Cash used in discontinued operati $0 $0 ($681,000)
Net cash used in investing activitie ($19,612,000) ($7,718,000) ($3,201,000)
Payments on long-term debt ($12,850,000) ($15,833,000) ($10,694,000)
Notes payable to banks, net $1,606,000 $300,000 ($4,357,000)
Repurchase of common stock $0 ($1,396,000) ($1,354,000)
Common stock issued under stock $1,299,000 $73,000 $0
plan
Cash dividends paid ($4,936,000) ($1,200,000) $0
Net cash used in financing activitie ($14,881,000) ($18,056,000) ($16,405,000)
Effect of exchange rate changes $4,169,000 $5,723,000 ($2,037,000)
Change in cash and cash equivale ($3,917,000) $3,890,000 $13,193,000
Cash and cash equivalents at begi $29,501,000 $25,611,000 $12,418,000
of year
Cash and cash equivalents at end $25,584,000 $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
Deferred income taxes ($5,646,000) $196,000 ($9,638,000)
Loss on disposition of assets $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
Prepaid expenses and other ($39,000) ($1,849,000) $5,793,000
Accounts payable and accrued expenses ($6,534,000) ($4,395,000) $3,529,000
Accrued environmental expenses ($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
Net cash provided by operating $34,836,000 $28,049,000 $50,135,000
activities
Proceeds from sale of assets $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) ($1,607,000) ($3,023,000)
operations
Net cash provided by (used in) ($3,201,000) ($6,228,000) $12,411,000
investing activities
Payments on long-term debt ($10,694,000) ($27,470,000) ($61,783,000)
Proceeds from long-term debt $0 $1,910,000 $28,844,000
Notes payable to banks, net ($4,357,000) ($3,309,000) ($1,409,000)
Redemption of convertible preferred stock $0 $0 ($4,162,000)
and minority interest
Repurchase of common stock ($1,354,000) $0 ($1,844,000)
Cash dividends paid $0 ($2,448,000) ($5,321,000)
Net cash used in financing activities ($16,405,000) ($31,317,000) ($45,675,000)
Effect of exchange rate changes ($2,037,000) ($1,274,000) ($5,143,000)
Change in cash and cash equivalents $13,193,000 ($10,770,000) $11,728,000
Cash and cash equivalents at beginning of $12,418,000 $23,188,000 $11,460,000
year
Cash and cash equivalents at end of period $25,611,000 $12,418,000 $23,188,000
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest $6,440,000 $8,376,000 $8,515,000
Income taxes $5,549,000 $13,378,000 $8,561,000
Supplemental disclosure of noncash information:
Receivable from capital lease $0 $2,036,000 $0
Receivables received upon sale of assets $9,561,000 $0 $7,308,000
Conversion of convertible preferred stock $0 $0 $413,000
to common stock
CASCADE CORP 10-K 2006-01-31: Income Statement
2006/01/31 2005/01/31 2004/01/31
Net sales $450,503,000 $385,719,000 $297,756,000
Cost of goods sold $307,774,000 $262,537,000 $202,120,000
Gross profit $142,729,000 $123,182,000 $95,636,000
Selling and administrative expenses $77,392,000 $75,892,000 $63,099,000
Amortization $1,443,000 $658,000 $512,000
Insurance litigation recovery $0 ($1,300,000) $0
Environmental expenses $0 $155,000 $0
Operating income $63,894,000 $47,777,000 $32,025,000
Interest expense $2,741,000 $3,570,000 $4,570,000
Interest income ($979,000) ($562,000) ($1,016,000)
Other (income) expense, net ($95,000) ($218,000) $40,000
Income before provision for income taxes $62,227,000 $44,987,000 $28,431,000
Provision for income taxes $20,176,000 $16,497,000 $9,925,000
Net income $42,051,000 $28,490,000 $18,506,000
Dividends paid on preferred shares of subsidiary $0 $0 ($30,000)
Net income applicable to common shareholders $42,051,000 $28,490,000 $18,476,000
Basic earnings per share $3,400 $2,340 $1,550
Diluted earnings per share $3,270 $2,240 $1,490
Basic weighted average shares outstanding $12,354,000 $12,164,000 $11,934,000
Diluted weighted average shares outstanding $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:
Cash and cash equivalents $35,493,000 $30,482,000
Marketable securities $23,004,000 $1,503,000
Accounts receivable, less allowance for doubtful acc $67,020,000 $70,728,000
of $1,415 and $2,182
Inventories $56,996,000 $46,212,000
Deferred income taxes $3,232,000 $3,042,000
Prepaid expenses and other $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
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
Current portion of long-term debt $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
Accrued environmental expenses $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 $25,187,000
Accrued environmental expenses $6,951,000 $7,799,000
Other liabilities $12,261,000 $10,830,000
Total liabilities $101,877,000 $110,209,000
Commitments and contingencies (Note 13)
Shareholders equity:
Common stock, $.50 par value, 20,000 authorized sh $6,268,000 $6,112,000
12,536 and 12,224 shares issued and outstanding
Additional paid-in capital $21,590,000 $20,004,000
Unamortized deferred compensation $0 ($4,506,000)
Retained earnings $223,867,000 $188,507,000
Accumulated other comprehensive income $7,681,000 $7,766,000
Total shareholders equity $259,406,000 $217,883,000
Total liabilities and shareholders equity $361,283,000 $328,092,000
Cascade tax rate 32.42% 36.67%

Cascade Annual Dividends
2001 0
2002 0.1
2003 0.41 Note the divs are for the year ending 31jan of next
2004 0.45
2005 0.54
Growth rate
75.44% #VALUE!
14.76% #VALUE!
ding 31jan of next

The Gordon Model Cost of Equity

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A B C

1 THE GORDON MODEL COST OF EQUITY

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

2003 2004 2005

1 COMPUTING JNJ's rE BASED ON DIVIDENDS PER SHARE

30 1-Jul-02 18.04 911.62 2.81% -8.23%

COMPUTING THE COST OF EQUITY FOR INTEL

Tax rate 31.29% 27.85%

COMPUTING THE COST OF EQUITY FOR INTEL

MEASURING E(rM) USING HISTORICAL DATA

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

PREMIUM E(rM) - rf USING HISTORICAL DATA

COMPUTING THE COST OF EQUITY FOR INTEL USING THE

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

COMPUTING THE COST OF EQUITY FOR INTEL USING THE MARKET

QUITY FOR INTEL USING THE MARKET

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

Current Fitch Years to

7.163 BBB No 0.76

0.002314967573556 x² + 0.015247747565798 x + 0.02211184123471

COMPUTING THE COST OF EQUITY rE FOR CASCADE USING THE

EQUITY rE FOR CASCADE USING THE

COMPUTING THE COST OF EQUITY rE FOR

31.06 53.03 35.84 9946.22 1076.92

7 Alpha -0.0074 -0.0058 0.0020 0.0097 0.0009 0.0100

Procter United Exxon

7 -0.0067 0.0062 0.0006 0.0083 -0.0033 -0.0043 0.0091 -0.0010

($372,000,000) Repurchase of Class A common stock ($372,000,000)

Tax rate, TC 29.37%

Shares outstanding (from equity in balance sheet)

Note: Yahoo shows 1.66B shares

Interest paid 227,000,000

2005 2004 2003

Income Before Income Taxes 528 635 523

Tax rate 29.55% 36.54% 35.56%

Weighted Average Shares Outstanding:

Liabilities and Shareholders Equity

2006/01/31 2005/01/31 2004/01/31

2004/01/31 2003/01/31 2002/01/31

2002/01/31 2001/01/31 2000/01/31

CASCADE CORP 10-K 2006-01-31: Balance Sheet

Cascade tax rate 32.42% 36.67%

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