Examine Exhibit 7 in detail. How important are each of the underlying financial assumptions in the ROA forecast? What assumptions (i.e., margins, asset turnover, growth) play the biggest role in driving the anticipated improvements in ROA?

P24 Exhibit 7 2 WHOLE FOODS MARKET Deutsche Bank Model (millions of USD, except per share figures) Actual Actual Actual Forecast Forecast At Fiscal Year End Store Growth Sales Growth EBITDA Margin 2011 4.0% 12.2% 8.5% 38.1% 2012 7.7% 15.7% 9.0% 38.4% 2013 8.1% 10.4% 9.5% 38.8% 2014 10.5% 11.1% 9.4% 39.0% 2015 12.6% 14.0% 9.8% 39.0% 10Tax Rate 7.0 5.6 6.5 10.5 10.9 10.7 6.4 6.56.7 7.0 10.5 2Current Asset Turnover 13 Current Liabilities Tunover 14 Net PP&E/Store 10.5 6.7 0.94 15 Annual Dep. & Amort. /Store 100 0.930.94 0.94 450 14,351 16,360 1,352 1,600 400 311 335 362 10,108 11,699 12,917 859 1,055 1,222 11339 Stores Sales EBITDA 376 423 976 1,176 381 459 596 372 1.60 20 Dep. & Amort. EBIT Taxes 548 744 883 209 286 343 339 458 540 350 364 372 Net Income 24Shares Outstanding 372 0.97 126 145 1.93 2,0502,304 898 25 Eanings per Share 26 Current Assets 1,453 2,103 1,980 880 977 1088 573 1,126 892 1,238 1406 28Current Liabilities 29 Net Working Capital 30Net PP&E 812 1,997 2,193 2,428 2,680 3,018 32Keturn on Capital 13.2% 13.8% 16.3% 17.1% 18.3% 34 Source: Company Financial Reports, Deutsche Bank Analyst report and casewniter estimates 35 36 37 Title Page| Exh 1 | Exh 2 |Exh 3 |Exh 4 Exh 5 Exh 6 Exh 7 Ready