Exhibit TN$1$

H$.$ J$.$ HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES

WACC Calculation for Heinz

$20092010$

Weight of Equity

Shares outstanding $($in millions of dollars$)315318$

Share price $($dollars as of close April $30,2010)34\mathrm{.}4246\mathrm{.}87$

Market value equity $10,83714,890$

Short term $6144$

Long term $($including current portion$)5,0814,574$

Book value of debt $($in millions of dollars$)5,1424,618$

Scaled total $($LTD scaled by price of LTD$)4,7055,391$

Weight of debt $32\mathrm{.}18\%23\mathrm{.}67\%$

Weight with scaled debt $30\mathrm{.}27\%26\mathrm{.}58\%$

Cost of Debt

Typical Standard & Poor$$s bond rating BBB BBB

Yield on long$-$term debt $($from bond terms$)7\mathrm{.}54\%5\mathrm{.}43\%$

Tax rate $30\mathrm{.}00\%30\mathrm{.}00\%$

Cost of Equity

Beta $0\mathrm{.}650\mathrm{.}65$

MRP $6\mathrm{.}00\%6\mathrm{.}00\%$

Rf $3\mathrm{.}16\%3\mathrm{.}69\%$

Cost of equity $7\mathrm{.}06\%7\mathrm{.}59\%$

WACC

With book value of debt $6\mathrm{.}49\%6\mathrm{.}69\%$

With scaled book value of debt $($market value$)6\mathrm{.}52\%6\mathrm{.}58\%-$ NEED STEPS & FORMULA TO GET TO THE WACC ANSWER