Professional Documents
Culture Documents
Balance 2006 ($ miles) sin y con una recompra de 14,000 acciones a $18.50 por accin (precio actual $ 16.25)
Balance 2006 reagrupado NWC,NFA Balance 2006 reagrupado con la recompra de las ac
2006
Cash 230,866 Cash
NWC 32,231 NWC
NFA 174,321 NFA
Other, net 50,945 Other, net
Total 488,363 Total
Debt 0 Debt
Equity 488,363 Equity
Total 488,363 Total
SHAREHOLDERS' ACCOUNT
Dividends @ 100% payout 53,630
Earnings on excess cash 0
Pre-tax income 53,630
Taxes @ 36% (19,307)
Net 34,323
LENDERS ACCOUNT
Interest earned 0
Taxes 0
Net 0
DISTRIBUTABLE FUNDS
Shareholders after tax 34,323
Lenders after tax 0
Part of Tn Exhibit 5: Computing Minimum WACC for Blaine over a Range of Capital Structures
Cost
Debt / Debt / Unlevered Levered of
Cap. Equity Beta Beta Equity
Existing 1
-31.7% -24.1% 0.74 0.56 7.82%
Proposal 6.9% 7.4% 0.74 0.79 8.98%
Part of TN Exhibit 5
6.75%
18.9
5,192
76,916
2006
with Repo
73,860
(9,914)
63,946
0
(3,375)
60,571
(18,629)
41,942
41,942
13,506
55,447
(19,961)
35,486
3,375
(1,040)
2,336
Difference
35,486 1,163
2,336 2,336
3,498
(39,630) 3,498
6%; lenders' tax rate is assumed
Cost
of Assumptions
Debt WACC Marginal Tax Rate 40.00%
5.02% 9.34% Risk-Free Rate 5.02%
6.75% 8.64% Market Risk Premium 5.00%
8.00% 9.12%
205,166 215,964