Using the Texas Instruments Inc. 2015 annual report and financial statements , define economic value and explain how an adjusted book value approach to valuing assets and liabilities moves book value nearer to economic value. You are required to provide a written response which highlights four specific elements in Texas Instruments balance sheet that might need to be adjusted to arrive at an economic value.

For each element, explain the type of adjustment and the type of information that might be required before an adjustment could be made to arrive at an economic value for Texas Instruments at its 2015 financial year-end.

b.Calculate the following market multiple ratios for Texas Instruments Inc. at its 2015 financial year-end:

i.EV/EBITDA

ii.Price-to-earnings ratio (PE ratio)

iii.Price-to-cash-flow ratio

iv.Contrast and explain the results of the different market multiple ratios that you calculated. Evaluate the usefulness of market multiple ratios in company valuation.

Consolidated Statements of Income

For Years Ended December 31,

2015 2014 2013

(Millions of dollars, except share and per-share amounts)

Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,000 $ 13,045 $ 12,205

Cost of revenue (COR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,440 5,618 5,841

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,560 7,427 6,364

Research and development (R&D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,280 1,358 1,522

Selling, general and administrative (SG&A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,748 1,843 1,858

Acquisition charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 330 341

Restructuring charges/other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71) (51) (189)

Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,274 3,947 2,832

Other income (expense), net (OI&E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 21 17

Interest and debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 94 95

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,216 3,874 2,754

Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,230 1,053 592

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,986 $ 2,821 $ 2,162

Earnings per common share (EPS):

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.86 $ 2.61 $ 1.94

Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.82 $ 2.57 $ 1.91

Average shares outstanding (millions):

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,030 1,065 1,098

Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,043 1,080 1,113

Cash dividends declared per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.40 $ 1.24 $ 1.07

As a result of accounting rule ASC 260, which requires a portion of Net income to be allocated to unvested restricted stock units

(RSUs) on which we pay dividend equivalents, diluted EPS is calculated using the following:

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,986 $ 2,821 $ 2,162

Income allocated to RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (42) (43) (36)

Income allocated to common stock for diluted EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,944 $ 2,778 $ 2,126

See accompanying notes.

TEXAS INSTRUMENTS 2015 FORM 10-K 27

FORM 10-K

Consolidated Statements of Comprehensive Income

For Years Ended December 31,

2015 2014 2013

(Millions of dollars)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,986 $ 2,821 $ 2,162

Other comprehensive income (loss)

Net actuarial gains (losses) of defined benefit plans:

Adjustment, net of tax benefit (expense) of $36, $25 and ($60) . . . . . . . . . . . . . . . . . . . . . (74) (46) 105

Recognized within Net income, net of tax benefit (expense) of ($25), ($21) and ($37) . . . . 53 42 71

Prior service (cost) credit of defined benefit plans:

Adjustment, net of tax benefit (expense) of ($11), $0 and $1 . . . . . . . . . . . . . . . . . . . . . . . 20 (1) (3)

Recognized within Net income, net of tax benefit (expense) of $0, $0 and $2 . . . . . . . . . . (3)

Derivative instruments:

Recognized within Net income, net of tax benefit (expense) of ($1), ($1) and ($1) . . . . . . . 1 1 1

Other comprehensive income (loss), net of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 171

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,986 $ 2,817 $ 2,333

See accompanying notes.

28 TEXAS INSTRUMENTS 2015 FORM 10-K

FORM 10-K

Consolidated Balance Sheets

December 31,

2015 2014

(Millions of dollars, except share amounts)

Assets

Current assets:

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 $ 1,199

Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,218 2,342

Accounts receivable, net of allowances of ($7) and ($12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,165 1,246

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 101

Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846 896

Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736 787

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,691 1,784

Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 850

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,074 7,421

Property, plant and equipment at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,465 6,266

Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,869) (3,426)

Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,596 2,840

Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 224

Goodwill, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,362 4,362

Acquisition-related intangibles, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,583 1,902

Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 180

Capitalized software licenses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 83

Overfunded retirement plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 127

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 233

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,230 $ 17,372

Liabilities and stockholders equity

Current liabilities:

Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 $ 1,001

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 437

Accrued compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 664 651

Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 71

Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410 498

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,555 2,658

Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,120 3,630

Underfunded retirement plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 225

Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 64

Deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 405

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,284 6,982

Stockholders equity:

Preferred stock, $25 par value. Authorized 10,000,000 shares

Participating cumulative preferred. None issued. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Common stock, $1 par value. Authorized 2,400,000,000 shares

Shares issued 1,740,815,939 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,741 1,741

Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,629 1,368

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,176 29,653

Treasury common stock at cost

Shares: 2015 729,547,527; 2014 694,189,127 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,068) (21,840)

Accumulated other comprehensive income (loss), net of taxes (AOCI) . . . . . . . . . . . . . . . . . . . . . . . . . (532) (532)

Total stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,946 10,390

Total liabilities and stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,230 $ 17,372

See accompanying notes.

TEXAS INSTRUMENTS 2015 FORM 10-K 29

FORM 10-K

Consolidated Statements of Cash Flows

For Years Ended December 31,

2015 2014 2013

(Millions of dollars)

Cash flows from operating activities

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,986 $ 2,821 $ 2,162

Adjustments to Net income:

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766 850 879

Amortization of acquisition-related intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 321 336

Amortization of capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 59 82

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 277 287

Gains on sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (85) (73) (6)

Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55) (61) 50

Increase (decrease) from changes in:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 (49) 16

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 (53) 26

Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 65 (136)

Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (188) (194) (284)

Accrued compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 89 18

Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 (81) 78

Changes in funded status of retirement plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23) (58) 28

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (68) (21) (152)

Cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,268 3,892 3,384

Cash flows from investing activities

Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (551) (385) (412)

Proceeds from asset sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 142 21

Purchases of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,767) (3,107) (3,907)

Proceeds from short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,892 2,966 4,249

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 7 46

Cash flows from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (302) (377) (3)

Cash flows from financing activities

Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 498 986

Repayment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,000) (1,000) (1,500)

Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,444) (1,323) (1,175)

Stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,741) (2,831) (2,868)

Proceeds from common stock transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 616 1,314

Excess tax benefit from share-based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 100 80

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (3) (7)

Cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,165) (3,943) (3,170)

Net change in Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (199) (428) 211

Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,199 1,627 1,416

Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 $ 1,199 $ 1,627

See accompanying notes.

30 TEXAS INSTRUMENTS 2015 FORM 10-K

FORM 10-K

Consolidated Statements of Stockholders Equity

Common

Stock

Paid-in

Capital

Retained

Earnings

Treasury

Common

Stock AOCI

(Millions of dollars, except per-share amounts)

Balance, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,741 $ 1,176 $ 27,205 $ (18,462) $ (699)

2013

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,162

Dividends declared and paid ($1.07 per share) . . . . . . . . . . . . . . . . (1,175)

Common stock issued for stock-based awards . . . . . . . . . . . . . . . . (273) 1,540

Stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,868)

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287

Tax impact from exercise of options . . . . . . . . . . . . . . . . . . . . . . . . 25

Other comprehensive income (loss), net of taxes . . . . . . . . . . . . . . . 171

Dividend equivalents paid on restricted stock units . . . . . . . . . . . . . (19)

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4)

Balance, December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,741 1,211 28,173 (19,790) (528)

2014

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,821

Dividends declared and paid ($1.24 per share) . . . . . . . . . . . . . . . . (1,323)

Common stock issued for stock-based awards . . . . . . . . . . . . . . . . (226) 781

Stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,831)

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277

Tax impact from exercise of options . . . . . . . . . . . . . . . . . . . . . . . . 110

Other comprehensive income (loss), net of taxes . . . . . . . . . . . . . . . (4)

Dividend equivalents paid on restricted stock units . . . . . . . . . . . . . (18)

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4)

Balance, December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,741 1,368 29,653 (21,840) (532)

2015

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,986

Dividends declared and paid ($1.40 per share) . . . . . . . . . . . . . . (1,444)

Common stock issued for stock-based awards . . . . . . . . . . . . . (116) 513

Stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,741)

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286

Tax impact from exercise of options . . . . . . . . . . . . . . . . . . . . . . 90

Other comprehensive income (loss), net of taxes . . . . . . . . . . . .

Dividend equivalents paid on restricted stock units . . . . . . . . . . (19)

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Balance, December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,741 $ 1,629 $ 31,176 $ (24,068) $ (532)

Table 6. Share price of Texas Instruments

This table shows share prices of Texas Instruments (TXN) in US dollars.

Date

Price

Date

Price

Date

Price

29-Jan-16	52.93	27-Nov-15	57.55	29-Sep-15	47.53
28-Jan-16	51.13	25-Nov-15	57.27	28-Sep-15	46.95
27-Jan-16	50.67	24-Nov-15	57.85	25-Sep-15	47.17
26-Jan-16	50.7	23-Nov-15	57.35	24-Sep-15	46.75
25-Jan-16	50.08	20-Nov-15	58.12	23-Sep-15	46.58
22-Jan-16	50.3	19-Nov-15	57.95	22-Sep-15	46.61
21-Jan-16	49.83	18-Nov-15	57.96	21-Sep-15	47.45
20-Jan-16	49.01	17-Nov-15	57.07	18-Sep-15	47.8
19-Jan-16	48.22	16-Nov-15	56.88	17-Sep-15	48.15
15-Jan-16	48.03	13-Nov-15	56.13	16-Sep-15	48.7
14-Jan-16	50.03	12-Nov-15	56.67	15-Sep-15	48.3
13-Jan-16	49.82	11-Nov-15	57.6	14-Sep-15	47.83
12-Jan-16	51.53	10-Nov-15	57.03	11-Sep-15	47.57
11-Jan-16	51.21	09-Nov-15	57.21	10-Sep-15	47.41
08-Jan-16	50.36	06-Nov-15	57.63	09-Sep-15	47.61
07-Jan-16	51.7	05-Nov-15	57.4	08-Sep-15	48.69
06-Jan-16	53.42	04-Nov-15	56.95	04-Sep-15	46.53
05-Jan-16	53.77	03-Nov-15	57.15	03-Sep-15	47.46
04-Jan-16	54.34	02-Nov-15	56.99	02-Sep-15	47.35
31-Dec-15	54.81	30-Oct-15	56.72	01-Sep-15	46.34
30-Dec-15	56.16	29-Oct-15	56.57	31-Aug-15	47.84
29-Dec-15	57.02	28-Oct-15	58.67	28-Aug-15	47.99
28-Dec-15	56.42	27-Oct-15	58.42	27-Aug-15	47.06
24-Dec-15	56.75	26-Oct-15	58.81	26-Aug-15	45.41
23-Dec-15	56.7	23-Oct-15	58.98	25-Aug-15	43.52
22-Dec-15	55.61	22-Oct-15	58.09	24-Aug-15	44.89
21-Dec-15	55.82	21-Oct-15	51.9	21-Aug-15	45.96
18-Dec-15	54.94	20-Oct-15	52.43	20-Aug-15	47.43
17-Dec-15	56.53	19-Oct-15	52.64	19-Aug-15	49.2
16-Dec-15	58.07	16-Oct-15	52.57	18-Aug-15	49.91
15-Dec-15	57.55	15-Oct-15	52.43	17-Aug-15	50.9
14-Dec-15	56.22	14-Oct-15	52.65	14-Aug-15	50.64
11-Dec-15	56.21	13-Oct-15	50.91	13-Aug-15	50.63

Table 4. Equity betas for Texas Instruments The coefficients shown in this table are estimated betas from regressions of weekly stock returns of Texas Instruments on returns of three major U.S. stock market indices. Unadjusted betas are the beta coefficients from these regressions. Adjusted betas are derived from raw betas according to the Bloomberg adjustment formula: adjusted beta = 1/3 + 2/3 unadjusted beta. Betas are shown for two and five-year periods ending on 31 December 2015.
Betas	Nasdaq 100	DJIA	S&P500
Unadjusted
Five years	1.049	1.201	1.188
Two years	1.058	1.265	1.302
Bloomberg-adjusted
Five years	1.032	1.134	1.125
Two years	1.038	1.177	1.201