3. What is your best estimate of the WACC for Kraft Foods?

H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Capital Market Data
(yields and prices as of the last trading day in April of the year indicated)
Average Historic Yields
	2003	2004	2005	2006	2007	2008	2009	2010
1-year	1.22%	1.55%	3.33%	4.98%	4.89%	1.85%	0.49%	0.41%
5-year	2.85%	3.63%	3.90%	4.92%	4.51%	3.03%	2.02%	2.43%
10-year	3.89%	4.53%	4.21%	5.07%	4.63%	3.77%	3.16%	3.69%
30-year(1)	4.79%	5.31%	4.61%	5.17%	4.89%	4.49%	4.05%	4.53%
Moodys Aaa	5.53%	5.87%	5.21%	5.95%	5.40%	5.51%	5.45%	5.13%
Moodys Baa	6.65%	6.58%	5.97%	6.74%	6.31%	6.87%	8.24%	6.07%
3-month commercial paper	1.21%	1.08%	2.97%	4.90%	5.22%	1.91%	0.22%	0.24%
Heinz Capital Market Prices of Typical Issues
							2009	2010
Heinz stock price							$34.42	$46.87
Bond price: 6.750% coupon, semiannual bond due 3/15/32 (Baa rated)							91.4	116.9
Bond price: 6.625% coupon, semiannual bond due 10/15/12 (Baa rated)							116.5	113.7