USE THE FOLLOWING DATA TO COMPUTE THE P/E RATIO AND WEIGHTED AVERAGE COST OF CAPITAL (WACC)

FILL IN THE MISSING FORMULA TO COMPUTE THE P/E RATIO AND WACC

D E F G 1 K L Year 1990 4 1991 5 1992 6 1993 7 1994 8 1995 9 1996 10 1997 11 1998 12 1999 13 2000 14 2001 15 2002 16 17 18 Cobra shares 19 Share price 20 Value of Debt in 2002 21 Debt in 2001 22 interest paid 23 Tax rate 24 rf B CALCULATING GAP'S WACC S&P Cobra return -3.10% -16.00% 30.47% 89.12% 7.62% 25.33% 10.08% 28.95% 1.32% -12.34% 37.58% 102.33% 22.96% 51.98% 33.36% 25.61% 28.58% 5.05% 21.04% 50.25% -9.10% -15.33% -11.89% -18.22% -22.10% -38.00% Risk-free rate 7.92% 6.64% 4.15% 3.50% 3.54% 7.05% 5.09% 5.61% 5.24% 4.51% 6.12% 4.81% 2.16% 2003 (projected) Average return Cost of Debt Cost of Equity Value of Equity P/E RATIO WACC $ 14.57 =B19*(1+E17) 21.44% =AVERAGE(C3:C15) 1.01% =B22/((B20+B21)/2) $ 18,000,000.00 =B18*B19 1,500,000 $ 12.00 44,500,000 35,000,000 400,000 36% 2.16% D E F G 1 K L Year 1990 4 1991 5 1992 6 1993 7 1994 8 1995 9 1996 10 1997 11 1998 12 1999 13 2000 14 2001 15 2002 16 17 18 Cobra shares 19 Share price 20 Value of Debt in 2002 21 Debt in 2001 22 interest paid 23 Tax rate 24 rf B CALCULATING GAP'S WACC S&P Cobra return -3.10% -16.00% 30.47% 89.12% 7.62% 25.33% 10.08% 28.95% 1.32% -12.34% 37.58% 102.33% 22.96% 51.98% 33.36% 25.61% 28.58% 5.05% 21.04% 50.25% -9.10% -15.33% -11.89% -18.22% -22.10% -38.00% Risk-free rate 7.92% 6.64% 4.15% 3.50% 3.54% 7.05% 5.09% 5.61% 5.24% 4.51% 6.12% 4.81% 2.16% 2003 (projected) Average return Cost of Debt Cost of Equity Value of Equity P/E RATIO WACC $ 14.57 =B19*(1+E17) 21.44% =AVERAGE(C3:C15) 1.01% =B22/((B20+B21)/2) $ 18,000,000.00 =B18*B19 1,500,000 $ 12.00 44,500,000 35,000,000 400,000 36% 2.16%