(40% tax rate, EBIT margin of 9%, revenue growth of 3%, discount rate 20%)

1. What will be Mercurys EBIT for years 2007 to 2011?

2. Assume that Mercury will face a tax rate of 40%. What will be its NOPLAT from 2007 to 2011?

3. What will be Mercurys depreciation for years 2007 to 2011?

4. What will be Mercurys capital expenditure for years 2007 to 2011?

Exhibit 6 Mercury Athletic Footwear: Base Case Projected Segment Performance ($ in thousands) Men's Athletic 2007 2008 2009 2010 2011 Revenue $ 251,957 $ 282,192 $ 310,411 $ 335,244 $352,006 Less: Operating Expenses 218435 244,647 269,112 290,641 305.173 Operating Income 33,522 37,545 41,299 44,603 46,834 Men's Casual: Revenue Less: Operating Expenses* Operating Income 52,179 43.834 8,345 53,223 44,711 8,512 54,287 45,605 8,682 55,916 46,973 8,943 57,594 48.382 9,211 Women's Athletic Revenue Less: Operating Expenses Operating Income 138,390 124 302 14,088 153,613 137.976 15,638 167,438 150,393 17,045 179,159 160,921 18,238 188,117 168,967 19,150 0 0 Women's Casual: Revenue Less: Operating Expenses Operating Income 36,802 37,265 (463) olo o 0 0 0 Consolidated Revenue Less: Operating Expenses* Less: Corporate Overhead Consolidated Operating Income Estimated Capital Expenditures Estimated Depreciation 479,329 423,837 8,487 $ 47,005 489,028 427,333 8,659 $ 53,036 532,137 465,110 9,422 $ 57,605 570,319 498,535 10,098 $ 61,686 597,717 522,522 10,583 $ 64,612 11,983 9,587 12,226 9,781 13,303 10,643 14,258 11,406 14,943 11,954 * Operating Expenses include an allocation of depreciation for each segment