Harley-Davidson Inc. produces motorcycles, motorcycle parts and related accessories and merchandise in the United States and internationally. It is headquartered in Milwaukee, Wisconsin. Use the following information on Harley-Davidson and five other similar companies to value Harley-Davidson as of December 31, 2004.

Harley-Davidson Inc. produces motorcycles, motorcycle parts and related accessories and merchandise in the United States and internationally. It is headquartered in Milwaukee, Wisconsin. Use the following information on Harley-Davidson and five other similar companies to value Harley-Davidson as of December 31, 2004. Harley-Davidson Inc. 2004 (s millions) Net income 889.77 Number of common shares, millions 294.31 Earnings before interest and tax 506.16 Tax rate 35.0% s 3,218.4 Book value of equity Book value interest-bearing debt 1,295.44 Total Sales 5,320.45 Total Assets s 5,483.29 Arctic Harley- Polaris Marine Winnebago Davidson Cat Brunswick ndustries Products ndustries Comparison of Timberland with Comparable Companies: Growth Rates, Financial Risks, Size, Returns 5-year growth rate in sales 15.5 6.2 4.1 6.1 15.5 10.8 5year growth rate in eps 28.1 11 47.1 15.9 25.1 17.2 Interest coverage ratio (K) 8.9 85 Total liabilities to assets 0.4 0.3 0.6 0.5 0.2 0.5 793 Total assets (S millions) 5,483 286 4,346 11 395 Indicators of Value Price/earnings (x) 16.9 17.8 27.8 28.6 18.6 MV firm/EBIT(1-tax rate) (x) 17.3 19.4 24.3 29.0 17.6 MV equity/BV equity (x 2.8 2.8 8.0 7.7 6.5 MV firm/BV firm (x) 2.8 2.3 7.7 7.7 6.5 Price/sales (x) 0.8 0.9 1.6 2.7 1.2 MV firm/sales (x) 0.8 1.1 1.7 2.7 1.2 These companies have little or no interest-bearing debt outstanding. Harley-Davidson Inc. produces motorcycles, motorcycle parts and related accessories and merchandise in the United States and internationally. It is headquartered in Milwaukee, Wisconsin. Use the following information on Harley-Davidson and five other similar companies to value Harley-Davidson as of December 31, 2004. Harley-Davidson Inc. 2004 (s millions) Net income 889.77 Number of common shares, millions 294.31 Earnings before interest and tax 506.16 Tax rate 35.0% s 3,218.4 Book value of equity Book value interest-bearing debt 1,295.44 Total Sales 5,320.45 Total Assets s 5,483.29 Arctic Harley- Polaris Marine Winnebago Davidson Cat Brunswick ndustries Products ndustries Comparison of Timberland with Comparable Companies: Growth Rates, Financial Risks, Size, Returns 5-year growth rate in sales 15.5 6.2 4.1 6.1 15.5 10.8 5year growth rate in eps 28.1 11 47.1 15.9 25.1 17.2 Interest coverage ratio (K) 8.9 85 Total liabilities to assets 0.4 0.3 0.6 0.5 0.2 0.5 793 Total assets (S millions) 5,483 286 4,346 11 395 Indicators of Value Price/earnings (x) 16.9 17.8 27.8 28.6 18.6 MV firm/EBIT(1-tax rate) (x) 17.3 19.4 24.3 29.0 17.6 MV equity/BV equity (x 2.8 2.8 8.0 7.7 6.5 MV firm/BV firm (x) 2.8 2.3 7.7 7.7 6.5 Price/sales (x) 0.8 0.9 1.6 2.7 1.2 MV firm/sales (x) 0.8 1.1 1.7 2.7 1.2 These companies have little or no interest-bearing debt outstanding