2 INPUT DATA: 3 4 Operating Data: 5 6 Total assets 7 EBIT BTax rate 9 No. of shares 10 Beth and Mgmt 11 Allowable Int E: 12 13 Capital Cost Data: 141 B D. KEY OUTPUT: $120,000,000 $32,000,000 21% 10,000,000 3,000,000 Insider Shares 30% EBIT 15 D kd Valuation Analysis: D P 16 17 $0 0 $0 $0.00 18 25,000,000 10.0% 25,000,000 $0.00 191 50,000,000 11.0% 50,000,000 $0.00 20 75,000,000 13.0% 75,000,000 $0.00 21 100,000,000 16.0% 100,000,000 $0.00 22 125,000,000 20.0% 125,000,000 $0.00 23 24 D ks 25 26 $0 16.0% 27 25,000,000 16.5% 28 50,000,000 17.5% 29 75,000,000 19.0% 0100,000,000 21.0% 31 125.000.000 26.0% H S D/V P WACC # Shares EPS Insider Holdings 33 34 35 Valuation Analysis: 36 37 38 D $0 39 ######## 40 ######## 41 ######## 44 45 46 47 ######## ######## Optimal Debt Level: Interest as a Interest Expense percent of EBIT Allowable Interest deduction (Interest 30% of EBIT) Effective Debt Tax Rate on Debt for WACC Adjusted NI Calculations. 48 D 49 $0 so ######## 51 ######## 52 ######## 53 ######## 55 ######## $0 $2,500,000 $5,500,000 $9,750,000 $16,000,000 $25,000,000 36 57