Exhibit 9 provides estimates of how CPKs capital structure looks like under each debt plan. In particular, it provides estimated market values of debt and equity under each plan. Could you make sense of the estimates? In particular, what might explain the market value changes relative to the base case (the column Actual)? And how would stock price change under each debt plan?

Exhibit 9 CALIFORNIA PIZZA KITCHEN Pro Forma Tax Shield Effect of Recapitalization Scenarios (dollars in thousands, except share data; figures based on end of June 2007) nuess. (1) Interest rate of CPK's credit facility with Bank of America: LIBOR +0.80%. (2) Earnings before interest and taxes (EBIT) include interest income. (3) Market values of debt equal book values. (4) Actual market value of equity equals the share price ($22.10) multiplied by the current number of shares outstanding ( 29.13 million). Source: Case writer analysis based on CPK financial data. Exhibit 9 CALIFORNIA PIZZA KITCHEN Pro Forma Tax Shield Effect of Recapitalization Scenarios (dollars in thousands, except share data; figures based on end of June 2007) nuess. (1) Interest rate of CPK's credit facility with Bank of America: LIBOR +0.80%. (2) Earnings before interest and taxes (EBIT) include interest income. (3) Market values of debt equal book values. (4) Actual market value of equity equals the share price ($22.10) multiplied by the current number of shares outstanding ( 29.13 million). Source: Case writer analysis based on CPK financial data