**PLEASE SHOW WORKING NOTES WITH FORMULA CALCULATIONS FOR THE FOLLOWING SECTIONS:

1.) Estimated Indicators of Value for HD, Inc.

2.) Implied value of HOG common stock per share

\begin{tabular}{|l|lr|} \hline \multicolumn{3}{|c|}{ Harley-Davidson Inc. 2004(\$ millions) } \\ \hline Net income & \multicolumn{2}{|l|}{$889.77} \\ \hline Number of common shares, millions & & 294.31 \\ \hline Earnings before interest and tax & $ & 1,506.16 \\ \hline Tax rate & & 35.0% \\ \hline Book value of equity & $ & 3,218.47 \\ \hline Book value interest-bearing debt & $ & 1,295.44 \\ \hline Total Sales & $ & 5,320.45 \\ \hline Total Assets & $ & 5,483.29 \\ \hline \end{tabular} * These companies have little or no interest-bearing debt outstanding. The median and mean values for Harley-Davidson's peers are appended to the table above: Here are my estimated indicators of value for Harley-Davidson Inc.: Price/earnings MV firm/EBIT(1-tax rate) MV equity/BV equity MV firm/BV firm Price/sales MV firm/sales The implied value of HOG common stock per share for each indicator of value is: The median and mean values for Harley-Davidson's peers are appended to the table above: \begin{tabular}{|l|lr|} \hline \multicolumn{3}{|c|}{ Harley-Davidson Inc. 2004(\$ millions) } \\ \hline Net income & \multicolumn{2}{|l|}{$889.77} \\ \hline Number of common shares, millions & & 294.31 \\ \hline Earnings before interest and tax & $ & 1,506.16 \\ \hline Tax rate & & 35.0% \\ \hline Book value of equity & $ & 3,218.47 \\ \hline Book value interest-bearing debt & $ & 1,295.44 \\ \hline Total Sales & $ & 5,320.45 \\ \hline Total Assets & $ & 5,483.29 \\ \hline \end{tabular} * These companies have little or no interest-bearing debt outstanding. The median and mean values for Harley-Davidson's peers are appended to the table above: Here are my estimated indicators of value for Harley-Davidson Inc.: Price/earnings MV firm/EBIT(1-tax rate) MV equity/BV equity MV firm/BV firm Price/sales MV firm/sales The implied value of HOG common stock per share for each indicator of value is: The median and mean values for Harley-Davidson's peers are appended to the table above