solve for cost of equity (CAPM) & WACC (CAPM)

Exhibit 13 SANOFI-AVENTIS'S TENDER OFFER FOR GENZYME Genzyme -- Financial Data for Market Comparables as of Year-End 2009 Genzyme (GENZ) $4,516 5504 5770 17.1% 5422 9.3% 268 $1.57 Revenues EBIT EBITDA EBITDA Margin (%) Net Income Net Income Margin Weighted Avg. Shares (in millions) EPS (Basic) Amgen (AMGN) $14,642 $5,506 $6,555 44.8% 54,605 31.5% 1,016 54.53 Biogen (BITB) $3,153 $1.295 $2,013 63.89 5977 31.0% 287 $3.40 Celgene (CELG) $2,567 5842 $1.003 39.1% Gilead (GILD) $7,011 $3.529 $3,742 53.4% 52,626 37.5% 905 $2.90 Life Tech (LIFE) $3,280 $386 5928 28.3% S145 4.4% 176 S0.82 5777 30.3% 459 $1.69 Stock Price Equity (Market Cap) P/E (Trailing) Beta (Value Line) $49.0 $13,159 31.2 0.70 $56.6 $57,475 12.5 0.65 553.5 $15,371 15.7 0.75 $27.8 $12,779 16.4% 0.80 $21.6 $19,584 7.5% 0.65 $52.2 $9,191 63.44 0.80 Debt (Interest Bearing) Equity Debt Equity Debu Market Cap Interest Expense EBITDA Interest Expense Long-Term Debt Rating (S&P) $124 $7,684 1.6% 0.9% (515) NA - 310,601 $22,667 46.8% 18.4% 5578 113 A $1,100 $6,262 17.6% 7.2% 50 NA BBB- 50 $4,395 0.0% 0.0% $2 5015 BBB $1.161 56,505 17.85 5.9% $28 133.6 A- 53,102 $4,027 77,0% 33.8% 5188 49 BBB Enterprise Value (EV) EV/EBITDA EV/Sales $13,283 17.3% 2.9% $68,076 10.4 4.6% $16,471 8.2% 5.2x 512,779 127 5.04 520,745 5.5 3.0 $12, 293 13.2% 3.7 Cost of equity (CAPM) Cost of equity (Kd14%) Cost of debt (debt rating) Debt weight Equity weight [1-Debt Weight 1-Tax rate (35%) WACC (CAPM) WACC (e-kod-growth of dividends) 7.8% 3.8% 0.9% 99.1% 65% 65% 65% 65% 65% 65% 7.7% Treasury Bond 2.48% RE Corporate Bonds AAA AA A BB BBB 2.90% 3.225 1.76% 4.42% 6.30% Market Risk Premium 6.00% RP Mentioned in the case assume Exhibit 13 SANOFI-AVENTIS'S TENDER OFFER FOR GENZYME Genzyme -- Financial Data for Market Comparables as of Year-End 2009 Genzyme (GENZ) $4,516 5504 5770 17.1% 5422 9.3% 268 $1.57 Revenues EBIT EBITDA EBITDA Margin (%) Net Income Net Income Margin Weighted Avg. Shares (in millions) EPS (Basic) Amgen (AMGN) $14,642 $5,506 $6,555 44.8% 54,605 31.5% 1,016 54.53 Biogen (BITB) $3,153 $1.295 $2,013 63.89 5977 31.0% 287 $3.40 Celgene (CELG) $2,567 5842 $1.003 39.1% Gilead (GILD) $7,011 $3.529 $3,742 53.4% 52,626 37.5% 905 $2.90 Life Tech (LIFE) $3,280 $386 5928 28.3% S145 4.4% 176 S0.82 5777 30.3% 459 $1.69 Stock Price Equity (Market Cap) P/E (Trailing) Beta (Value Line) $49.0 $13,159 31.2 0.70 $56.6 $57,475 12.5 0.65 553.5 $15,371 15.7 0.75 $27.8 $12,779 16.4% 0.80 $21.6 $19,584 7.5% 0.65 $52.2 $9,191 63.44 0.80 Debt (Interest Bearing) Equity Debt Equity Debu Market Cap Interest Expense EBITDA Interest Expense Long-Term Debt Rating (S&P) $124 $7,684 1.6% 0.9% (515) NA - 310,601 $22,667 46.8% 18.4% 5578 113 A $1,100 $6,262 17.6% 7.2% 50 NA BBB- 50 $4,395 0.0% 0.0% $2 5015 BBB $1.161 56,505 17.85 5.9% $28 133.6 A- 53,102 $4,027 77,0% 33.8% 5188 49 BBB Enterprise Value (EV) EV/EBITDA EV/Sales $13,283 17.3% 2.9% $68,076 10.4 4.6% $16,471 8.2% 5.2x 512,779 127 5.04 520,745 5.5 3.0 $12, 293 13.2% 3.7 Cost of equity (CAPM) Cost of equity (Kd14%) Cost of debt (debt rating) Debt weight Equity weight [1-Debt Weight 1-Tax rate (35%) WACC (CAPM) WACC (e-kod-growth of dividends) 7.8% 3.8% 0.9% 99.1% 65% 65% 65% 65% 65% 65% 7.7% Treasury Bond 2.48% RE Corporate Bonds AAA AA A BB BBB 2.90% 3.225 1.76% 4.42% 6.30% Market Risk Premium 6.00% RP Mentioned in the case assume