(i) Calculate Cost of Equity(rE) for MAC using Gordon per share dividend method (if current stock price is 28.46 Following are the monthly price data of MAC and Fort companies from 2001-2006

Prices Date MAC Fort

Jan-01 35.38 1,366.01

Feb-01 27.32 1,239.94

Mar-01 25.17 1,160.33

Apr-01 29.57 1,249.46

May-01 25.86 1,255.82

Jun-01 28.00 1,224.38

Jul-01 28.54 1,211.23

Aug-01 26.88 1,133.58

Sep-01 19.57 1,040.94

Oct-01 23.24 1,059.78

Nov-01 31.16 1,139.45

Dec-01 31.45 1,148.08

Jan-02 35.04 1,130.20

Feb-02 28.55 1,106.73

Mar-02 30.41 1,147.39

Apr-02 28.61 1,076.92

May-02 27.62 1,067.14

Jun-02 18.27 989.82

Jul-02 18.79 911.62

Aug-02 16.67 916.07

Sep-02 13.89 815.28

Oct-02 17.30 885.76

Nov-02 20.88 936.31

Dec-02 15.57 879.82

Jan-03 15.66 855.7

Feb-03 17.25 841.15

Mar-03 16.28 848.18

Apr-03 18.40 916.92

May-03 20.82 963.59

Jun-03 20.81 974.5

Jul-03 24.89 990.31

Aug-03 28.59 1,008.01

Sep-03 27.52 995.97

Oct-03 32.95 1,050.71

Nov-03 33.54 1,058.20

Dec-03 32.05 1,111.92

Jan-04 30.52 1,131.13

Feb-04 29.20 1,144.94

Mar-04 27.20 1,126.21

Apr-04 25.73 1,107.30

May-04 28.55 1,120.68

Jun-04 27.60 1,140.84

Jul-04 24.38 1,101.72

Aug-04 21.29 1,104.24

Sep-04 20.06 1,114.58

Oct-04 22.26 1,130.20

Nov-04 22.38 1,173.82

Dec-04 23.39 1,211.92

Jan-05 22.45 1,181.27

Feb-05 23.99 1,203.60

Mar-05 23.23 1,180.59

Apr-05 23.52 1,156.85

May-05 26.96 1,191.50

Jun-05 26.02 1,191.33

Jul-05 27.14 1,234.18

Aug-05 25.24 1,220.33

Sep-05 24.19 1,228.81

Oct-05 23.06 1,207.01

Nov-05 26.27 1,249.48

Dec-05 24.57 1,248.29

Jan-06 25.90 1,285.45