Taking a Closer Look Calculating 3M's Cost of Capital Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a company's WACC, which is the weighted average of its costs of debt, preferred stock, and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining & Manufacturing's (MMM) WACC. Discussion Questions 1. As a first step, we need to estimate what percentage of MMM's capital comes from debt, preferred stock, and common equity. This information can be found on the firm's latest annual balance sheet. (As of year end 2014, MMM had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the company's target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for MMM? b. Find MMM's market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firm's debt and common equity weights to be used in the WACC equation. These weights are approximations of market value b. Find MMM's market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firm's debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation. 2. Once again we can use the CAPM to estimate MMM's cost of equity. From the Internet, you can find a number of different sources for estimates of beta-select the measure that you think is best, and combine this with your estimates of the risk-free rate and the market risk premium to obtain an estimate of its cost of equity. (See the Taking a Closer Look problem in Chapter 8 for more details.) What is your estimate for MMM's cost of equity? Why might it not make much sense to use the DCF approach to estimate MMM's cost of equity? 3. Next, we need to calculate MMM's cost of debt. We can use different approaches to estimate it. One approach is to take the company's interest expense and divide it by total debt (which is the sum of short- term debt and long-term debt). This approach only works if the historical cost of debt equals the yield to maturity in today's market (i.e., if MMM's outstanding bonds are trading at close to par). This approach may produce misleading estimates in years in which MMM issues a significant amount of new debt. For example, if a company issues a great deal of debt at the end of the year, the full amount of debt will appear on the year-end balance sheet, yet we still may not see a sharp increase in annual interest expense because the debt was outstanding for only a small portion of the entire year. When this situation occurs, the estimated cost of debt will likely understate the true cost of debt. Another approach is to try to find this number in the notes to the company's annual report by accessing the company's home page and its Investor Relations section. Alternatively, you can go to other external sources, such as bondsonline.com, maturity in today's market (i.e., if MMM's outstanding bonds are trading at close to par). This approach may produce misleading estimates in years in which MMM issues a significant amount of new debt. For example, if a company issues a great deal of debt at the end of the year, the full amount of debt will appear on the year-end balance sheet, yet we still may not see a sharp increase in annual interest expense because the debt was outstanding for only a small portion of the entire year. When this situation occurs, the estimated cost of debt will likely understate the true cost of debt. Another approach is to try to find this number in the notes to the company's annual report by accessing the company's home page and its Investor Relations section. Alternatively, you can go to other external sources, such as bondsonline.com, for corporate bond spreads, which can be used to find estimates of the cost of debt. Finally, you can also go to Morningstar.com, which will provide yield to maturity information on the firm's various bond issues. A longer-term issue's YTM could provide an estimate of the firm's current cost of debt to be used in the WACC calculation. Remember that you need the after-tax cost of debt to calculate a firm's WACC, so you will need MMM's tax rate (which has averaged around 30% in recent years). What is your estimate of MMM's after-tax cost of debt? a. What is your estimate of MMM's WACC using the book-value weights calculated in question la? b. What is your estimate of MMM's WACC using the market-value weights calculated in question 1b2 c. Explain the difference between the two WACC estimates. Which estimate do you prefer? Explain your answer d. How confident are you in the estimate chosen in part c? Explain your answer. 4. Breakdown 12/31/2019 12/31/2018 12/31/2017 12/31/2016 32,906,000 > Total Assets 44,659,000 36,500,000 37,987,000 34,533,000 26,652,000 26,365,000 22,563,000 10,126,000 9,848,000 11,622,000 10,343,000 > Total Liabilities Net Minority ... > Total Equity Gross Minority ... Total Capitalization Common Stock Equity Capital Lease Obligations 27,581,000 23,207,000 23,659,000 20,976,000 10,063,000 9,796,000 11,563,000 10,298,000 965,000 75,000 60,000 45,000 Net Tangible Assets -9,760,000 -2,912,000 -1,886,000 -1,188,000 Working Capital 3,749,000 6,465,000 6,590,000 5,507,000 Invested Capital 30,376,000 24,418,000 25,512,000 21,948,000 Invested Capital 30,376,000 24,418,000 25,512,000 21,948,000 Tangible Book Value -9,760,000 -2,912,000 -1,886,000 -1,188,000 Total Debt 21,278,000 14,697,000 14,009,000 11,695,000 Net Debt 17,960,000 11,769,000 10,896,000 9,252,000 Share issued 944,033 944,033 944,033 939,293 Ordinary Shares Number 575,185 576,575 594,884 596,726 Treasury Shares Number 368,848 367,458 349,149 342,567 Download Expand All Balance Sheet All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Premium. Learn more Breakdown Total Assets 12/31/2019 44,659,000 12/31/2018 36,500,000 12/31/2017 37,987,000 12/31/2016 32,906,000 Current Assets 12,971,000 13,709,000 14,277,000 11,726,000 2,451,000 3,233,000 4,129,000 2,678,000 2,353,000 2,853,000 3,053,000 2,398,000 98,000 380,000 1,076,000 280,000 4,963,000 5,123,000 4,982,000 4,501,000 Cash, Cash Equivalents & S... Cash And Cash Equivalents Other Short Term Investme.. Receivables Accounts receivable Gross Accounts Receiva... Allowance For Doubtful ... Other Receivables 4,791,000 5,020,000 4,911,000 4,392,000 4,952,000 4,480,000 -161,000 5,115,000 -95,000 103,000 5,014,000 -103,000 71,000 -88,000 109,000 172,000 Inventory 4,134,000 4,366,000 4,034,000 3,385,000 937,000 954,000 901,000 717,000 Raw Materials Work in Process Finished Goods 1,194,000 1,292,000 1,218,000 1,039,000 2,003,000 2,120,000 1,915,000 1,629.000 704,000 741,000 937,000 1,014,000 Prepaid Assets Restricted Cash Hedging Assets Current 470,000 75,000 88,000 37.000 148,000 75,000 88,000 37,000 148,000 174,000 158,000 158,000 109,000 Hedging Assets Current Other Current Assets Total non-current assets Net PPE Gross PPE 31,688,000 22,791,000 23,710,000 21,180,000 10,191,000 8,738,000 8,866,000 8,516,000 26,982,000 24,873,000 24,914,000 23,499,000 0 0 0 0 Properties Land And Improvements Buildings And Improvem.. 351,000 340,000 348,000 341,000 7,877,000 7,517,000 7,681,000 7,252,000 16,586,000 15,680,000 15,907,000 14,935,000 858,000 143,000 135,000 162,000 1,310,000 1,193,000 843,000 809,000 Machinery Furniture Equ... Other Properties Construction in Progress Accumulated Depreciation Goodwill And Other Intang Goodwill Other Intangible Assets -16,791,000 -16,135,000 -16,048,000 -14,983,000 19,823,000 12,708,000 13,449,000 11,486,000 13,444,000 10,051,000 10,513,000 9,166,000 6,379,000 2,657,000 2,936,000 2,320,000 Investments And Advances 196,000 188,000 150,000 145,000 70,000 70,000 70,000 60,000 126,000 118,000 80,000 84,000 1,000 Long Term Equity Investme... Investment in Financial Ass... Other Investments Non Current Accounts Receiv.. Non Current Deferred Ass... Non Current Deferred Taxe... 67,000 68,000 63,000 68,000 521,000 365,000 511,000 422,000 521,000 365.000 511,000 422,000 Non Current Accounts Receiv... 67,000 68,000 63,000 68,000 Non Current Deferred Ass. 521,000 365,000 511,000 422,000 521,000 365,000 511,000 422,000 Non Current Deferred Taxe... Defined Pension Benefit Other Non Current Assets 230,000 208,000 237,000 52,000 660,000 516,000 434,000 491,000 Total Liabilities Net Minority Int... 34,533,000 26,652,000 26,365,000 22,563,000 Current Liabilities 9,222,000 7,244,000 7,687,000 6,219,000 3,965,000 4,089,000 3,918,000 3,443,000 2,669,000 2,782,000 2,532,000 2,765,000 2,228,000 1,945,000 2,266,000 516,000 2,376,000 389,000 441,000 587,000 194,000 243,000 310,000 299,000 1,296,000 1,307,000 1,386,000 678,000 296,000 304,000 277,000 221,000 Payables And Accrued Exp... Payables Accounts Payable Total Tax Payable Income Tax Payable Current Accrued Expenses Pension & Other Post Retirem... Current Debt And Capital... Current Debt Commercial Paper Line of Credit Other Current Borrowings Current Capital Lease Oblig. Current Deferred Liabilities Current Deferred Revenue 3,042,000 1,211,000 1,853,000 972,000 2,795,000 1,211,000 1,853,000 972,000 150,000 800,000 1,211,000 1,853,000 972,000 1,845,000 247,000 430,000 617,000 513,000 551,000 430,000 617,000 513,000 551,000 301.000 279.000 272,000 160,000 301,000 279,000 235,000 145,000 15,000 Non Current Deferred Liab... Non Current Deferred Taxe... Non Current Deferred Re... Tradeand Other Payables No... Employee Benefits Non Current Pension And ... 244,000 1,507,000 4,223,000 3,911,000 1,274,000 3,286,000 37,000 1,287,000 3,939.000 3,620,000 4,274,000 2,987,000 4,018,000 1,044,000 1,083,000 1,024,000 943,000 10,126,000 9,848,000 11,622,000 10,343,000 10,063,000 9,796,000 11,563,000 10,298,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 5,907,000 5,643,000 5,352,000 5,061,000 42,135,000 40,636,000 37,907,000 39,115,000 25,887,000 25,434,000 Other Non Current Liabilities Total Equity Gross Minority Inte... Stockholders' Equity Capital Stock Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Gains Losses Not Affecting Re. Minority interest Total Capitalization Common Stock Equity Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital 29,849,000 -8,139,000 29,626,000 -6,866,000 -7,026,000 -7,245,000 63.000 52,000 59,000 45,000 27,581,000 23,659,000 20,976,000 10,063,000 965,000 23,207,000 9,796,000 75,000 -2,912,000 11,563,000 60,000 10,298,000 45,000 -1,188,000 -1,886,000 -9,760,000 3,749,000 6,465,000 6,590,000 5,507,000 30,376,000 24,418,000 25,512.000 21,948,000 Other Non Current Liabilities 1,083,004 Total Equity Gross Minority Inte... 10,126,000 9,848,000 11,622,000 10,343,000 Stockholders' Equity 10,063,000 9,796,000 11,563,000 10,298,000 Capital Stock 9,000 9,000 9,000 9,000 Common Stock 9,000 9,000 9,000 9,000 5,907,000 5,643,000 5,352,000 5,061,000 42,135,000 40,636,000 39,115,000 37,907,000 Additional Paid in Capital Retained Earnings Treasury Stock Gains Losses Not Affecting Re. Minority Interest 29,849,000 29,626,000 25,887,000 25,434,000 -8,139,000 -6,866,000 -7,026,000 -7,245,000 63,000 59,000 52,000 23,207,000 45,000 20,976,000 Total Capitalization 27,581,000 23,659,000 10,063,000 9,796,000 11,563,000 10,298,000 965,000 75,000 60,000 45,000 Common Stock Equity Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital -9,760,000 -2,912,000 -1,886,000 -1,188,000 3,749,000 6,465,000 6,590,000 5,507,000 30,376,000 25,512,000 21,948,000 24,418,000 -2,912,000 Tangible Book Value -9,760,000 -1,886,000 -1,188,000 21,278,000 14,009,000 11,695,000 14,697,000 11,769,000 17,960,000 10,896,000 9,252,000 Total Debt Net Debt Share Issued Ordinary Shares Number Treasury Shares Number 944,033 944,033 944,033 939,293 575,185 576,575 594,884 596,726 368,848 367,458 349,149 342,567 Taking a Closer Look Calculating 3M's Cost of Capital Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a company's WACC, which is the weighted average of its costs of debt, preferred stock, and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining & Manufacturing's (MMM) WACC. Discussion Questions 1. As a first step, we need to estimate what percentage of MMM's capital comes from debt, preferred stock, and common equity. This information can be found on the firm's latest annual balance sheet. (As of year end 2014, MMM had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the company's target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for MMM? b. Find MMM's market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firm's debt and common equity weights to be used in the WACC equation. These weights are approximations of market value b. Find MMM's market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firm's debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation. 2. Once again we can use the CAPM to estimate MMM's cost of equity. From the Internet, you can find a number of different sources for estimates of beta-select the measure that you think is best, and combine this with your estimates of the risk-free rate and the market risk premium to obtain an estimate of its cost of equity. (See the Taking a Closer Look problem in Chapter 8 for more details.) What is your estimate for MMM's cost of equity? Why might it not make much sense to use the DCF approach to estimate MMM's cost of equity? 3. Next, we need to calculate MMM's cost of debt. We can use different approaches to estimate it. One approach is to take the company's interest expense and divide it by total debt (which is the sum of short- term debt and long-term debt). This approach only works if the historical cost of debt equals the yield to maturity in today's market (i.e., if MMM's outstanding bonds are trading at close to par). This approach may produce misleading estimates in years in which MMM issues a significant amount of new debt. For example, if a company issues a great deal of debt at the end of the year, the full amount of debt will appear on the year-end balance sheet, yet we still may not see a sharp increase in annual interest expense because the debt was outstanding for only a small portion of the entire year. When this situation occurs, the estimated cost of debt will likely understate the true cost of debt. Another approach is to try to find this number in the notes to the company's annual report by accessing the company's home page and its Investor Relations section. Alternatively, you can go to other external sources, such as bondsonline.com, maturity in today's market (i.e., if MMM's outstanding bonds are trading at close to par). This approach may produce misleading estimates in years in which MMM issues a significant amount of new debt. For example, if a company issues a great deal of debt at the end of the year, the full amount of debt will appear on the year-end balance sheet, yet we still may not see a sharp increase in annual interest expense because the debt was outstanding for only a small portion of the entire year. When this situation occurs, the estimated cost of debt will likely understate the true cost of debt. Another approach is to try to find this number in the notes to the company's annual report by accessing the company's home page and its Investor Relations section. Alternatively, you can go to other external sources, such as bondsonline.com, for corporate bond spreads, which can be used to find estimates of the cost of debt. Finally, you can also go to Morningstar.com, which will provide yield to maturity information on the firm's various bond issues. A longer-term issue's YTM could provide an estimate of the firm's current cost of debt to be used in the WACC calculation. Remember that you need the after-tax cost of debt to calculate a firm's WACC, so you will need MMM's tax rate (which has averaged around 30% in recent years). What is your estimate of MMM's after-tax cost of debt? a. What is your estimate of MMM's WACC using the book-value weights calculated in question la? b. What is your estimate of MMM's WACC using the market-value weights calculated in question 1b2 c. Explain the difference between the two WACC estimates. Which estimate do you prefer? Explain your answer d. How confident are you in the estimate chosen in part c? Explain your answer. 4. Breakdown 12/31/2019 12/31/2018 12/31/2017 12/31/2016 32,906,000 > Total Assets 44,659,000 36,500,000 37,987,000 34,533,000 26,652,000 26,365,000 22,563,000 10,126,000 9,848,000 11,622,000 10,343,000 > Total Liabilities Net Minority ... > Total Equity Gross Minority ... Total Capitalization Common Stock Equity Capital Lease Obligations 27,581,000 23,207,000 23,659,000 20,976,000 10,063,000 9,796,000 11,563,000 10,298,000 965,000 75,000 60,000 45,000 Net Tangible Assets -9,760,000 -2,912,000 -1,886,000 -1,188,000 Working Capital 3,749,000 6,465,000 6,590,000 5,507,000 Invested Capital 30,376,000 24,418,000 25,512,000 21,948,000 Invested Capital 30,376,000 24,418,000 25,512,000 21,948,000 Tangible Book Value -9,760,000 -2,912,000 -1,886,000 -1,188,000 Total Debt 21,278,000 14,697,000 14,009,000 11,695,000 Net Debt 17,960,000 11,769,000 10,896,000 9,252,000 Share issued 944,033 944,033 944,033 939,293 Ordinary Shares Number 575,185 576,575 594,884 596,726 Treasury Shares Number 368,848 367,458 349,149 342,567 Download Expand All Balance Sheet All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Premium. Learn more Breakdown Total Assets 12/31/2019 44,659,000 12/31/2018 36,500,000 12/31/2017 37,987,000 12/31/2016 32,906,000 Current Assets 12,971,000 13,709,000 14,277,000 11,726,000 2,451,000 3,233,000 4,129,000 2,678,000 2,353,000 2,853,000 3,053,000 2,398,000 98,000 380,000 1,076,000 280,000 4,963,000 5,123,000 4,982,000 4,501,000 Cash, Cash Equivalents & S... Cash And Cash Equivalents Other Short Term Investme.. Receivables Accounts receivable Gross Accounts Receiva... Allowance For Doubtful ... Other Receivables 4,791,000 5,020,000 4,911,000 4,392,000 4,952,000 4,480,000 -161,000 5,115,000 -95,000 103,000 5,014,000 -103,000 71,000 -88,000 109,000 172,000 Inventory 4,134,000 4,366,000 4,034,000 3,385,000 937,000 954,000 901,000 717,000 Raw Materials Work in Process Finished Goods 1,194,000 1,292,000 1,218,000 1,039,000 2,003,000 2,120,000 1,915,000 1,629.000 704,000 741,000 937,000 1,014,000 Prepaid Assets Restricted Cash Hedging Assets Current 470,000 75,000 88,000 37.000 148,000 75,000 88,000 37,000 148,000 174,000 158,000 158,000 109,000 Hedging Assets Current Other Current Assets Total non-current assets Net PPE Gross PPE 31,688,000 22,791,000 23,710,000 21,180,000 10,191,000 8,738,000 8,866,000 8,516,000 26,982,000 24,873,000 24,914,000 23,499,000 0 0 0 0 Properties Land And Improvements Buildings And Improvem.. 351,000 340,000 348,000 341,000 7,877,000 7,517,000 7,681,000 7,252,000 16,586,000 15,680,000 15,907,000 14,935,000 858,000 143,000 135,000 162,000 1,310,000 1,193,000 843,000 809,000 Machinery Furniture Equ... Other Properties Construction in Progress Accumulated Depreciation Goodwill And Other Intang Goodwill Other Intangible Assets -16,791,000 -16,135,000 -16,048,000 -14,983,000 19,823,000 12,708,000 13,449,000 11,486,000 13,444,000 10,051,000 10,513,000 9,166,000 6,379,000 2,657,000 2,936,000 2,320,000 Investments And Advances 196,000 188,000 150,000 145,000 70,000 70,000 70,000 60,000 126,000 118,000 80,000 84,000 1,000 Long Term Equity Investme... Investment in Financial Ass... Other Investments Non Current Accounts Receiv.. Non Current Deferred Ass... Non Current Deferred Taxe... 67,000 68,000 63,000 68,000 521,000 365,000 511,000 422,000 521,000 365.000 511,000 422,000 Non Current Accounts Receiv... 67,000 68,000 63,000 68,000 Non Current Deferred Ass. 521,000 365,000 511,000 422,000 521,000 365,000 511,000 422,000 Non Current Deferred Taxe... Defined Pension Benefit Other Non Current Assets 230,000 208,000 237,000 52,000 660,000 516,000 434,000 491,000 Total Liabilities Net Minority Int... 34,533,000 26,652,000 26,365,000 22,563,000 Current Liabilities 9,222,000 7,244,000 7,687,000 6,219,000 3,965,000 4,089,000 3,918,000 3,443,000 2,669,000 2,782,000 2,532,000 2,765,000 2,228,000 1,945,000 2,266,000 516,000 2,376,000 389,000 441,000 587,000 194,000 243,000 310,000 299,000 1,296,000 1,307,000 1,386,000 678,000 296,000 304,000 277,000 221,000 Payables And Accrued Exp... Payables Accounts Payable Total Tax Payable Income Tax Payable Current Accrued Expenses Pension & Other Post Retirem... Current Debt And Capital... Current Debt Commercial Paper Line of Credit Other Current Borrowings Current Capital Lease Oblig. Current Deferred Liabilities Current Deferred Revenue 3,042,000 1,211,000 1,853,000 972,000 2,795,000 1,211,000 1,853,000 972,000 150,000 800,000 1,211,000 1,853,000 972,000 1,845,000 247,000 430,000 617,000 513,000 551,000 430,000 617,000 513,000 551,000 301.000 279.000 272,000 160,000 301,000 279,000 235,000 145,000 15,000 Non Current Deferred Liab... Non Current Deferred Taxe... Non Current Deferred Re... Tradeand Other Payables No... Employee Benefits Non Current Pension And ... 244,000 1,507,000 4,223,000 3,911,000 1,274,000 3,286,000 37,000 1,287,000 3,939.000 3,620,000 4,274,000 2,987,000 4,018,000 1,044,000 1,083,000 1,024,000 943,000 10,126,000 9,848,000 11,622,000 10,343,000 10,063,000 9,796,000 11,563,000 10,298,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 5,907,000 5,643,000 5,352,000 5,061,000 42,135,000 40,636,000 37,907,000 39,115,000 25,887,000 25,434,000 Other Non Current Liabilities Total Equity Gross Minority Inte... Stockholders' Equity Capital Stock Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Gains Losses Not Affecting Re. Minority interest Total Capitalization Common Stock Equity Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital 29,849,000 -8,139,000 29,626,000 -6,866,000 -7,026,000 -7,245,000 63.000 52,000 59,000 45,000 27,581,000 23,659,000 20,976,000 10,063,000 965,000 23,207,000 9,796,000 75,000 -2,912,000 11,563,000 60,000 10,298,000 45,000 -1,188,000 -1,886,000 -9,760,000 3,749,000 6,465,000 6,590,000 5,507,000 30,376,000 24,418,000 25,512.000 21,948,000 Other Non Current Liabilities 1,083,004 Total Equity Gross Minority Inte... 10,126,000 9,848,000 11,622,000 10,343,000 Stockholders' Equity 10,063,000 9,796,000 11,563,000 10,298,000 Capital Stock 9,000 9,000 9,000 9,000 Common Stock 9,000 9,000 9,000 9,000 5,907,000 5,643,000 5,352,000 5,061,000 42,135,000 40,636,000 39,115,000 37,907,000 Additional Paid in Capital Retained Earnings Treasury Stock Gains Losses Not Affecting Re. Minority Interest 29,849,000 29,626,000 25,887,000 25,434,000 -8,139,000 -6,866,000 -7,026,000 -7,245,000 63,000 59,000 52,000 23,207,000 45,000 20,976,000 Total Capitalization 27,581,000 23,659,000 10,063,000 9,796,000 11,563,000 10,298,000 965,000 75,000 60,000 45,000 Common Stock Equity Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital -9,760,000 -2,912,000 -1,886,000 -1,188,000 3,749,000 6,465,000 6,590,000 5,507,000 30,376,000 25,512,000 21,948,000 24,418,000 -2,912,000 Tangible Book Value -9,760,000 -1,886,000 -1,188,000 21,278,000 14,009,000 11,695,000 14,697,000 11,769,000 17,960,000 10,896,000 9,252,000 Total Debt Net Debt Share Issued Ordinary Shares Number Treasury Shares Number 944,033 944,033 944,033 939,293 575,185 576,575 594,884 596,726 368,848 367,458 349,149 342,567