What rate of return should Oracle require on the acquisition?

Exhibit 14 SUN MICROSYSTEMS Sun Microsystems Historical and Projected Income Statement (in millions of U.S, dollars) Fiscal Year-End June 30 2007 2008 13,873 13,880 11449 12,665 13,047 13,52613,88514.243 6.265 6,4554.7314,980 5,464 5,7915.9966.168 2,008 18341648 2009E 2010 2011E 2012E 2013E2014E 9 Net Revenue 10 Cost of Sales 11 Gross Margin 12 Selling, General, & Administrative 3,851 3,955 3,461 13 Research & Development 14 Impairment of Goodwill 5 Other Operating Expense 16 Total Operating Expense 17 Operating Income 18 19 Depreciation & Amortization 20 as % of Prior Year PP&E 21 Net PP&IE 22- 1,460 6.083 6967 4.839 4,992 5,12249372 472 309 372 (2236) 141 670 747 796 517 34.4% 1,504 10.8% 476 29.5% 474 29.3% 1,616 536 30.0% 1,520 12.0% 456 30.0% 470 30.0% 487 30.0% 500 30.0% 11 11.6% 1,6 1,566 12.0% 1,623 12.0% 1,666/1,709 12.0% as % of Sales 14.1% 12.0% 24 Data sources: Company filings and case writer estimates 26 30 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 Exhibit 7 Exhibit 8 Exhibit 9/ Exhibit 10Exhibit Ehibit 12 Exhibi 13 Bs O Type here to search Exhibit 14 SUN MICROSYSTEMS Sun Microsystems Historical and Projected Income Statement (in millions of U.S, dollars) Fiscal Year-End June 30 2007 2008 13,873 13,880 11449 12,665 13,047 13,52613,88514.243 6.265 6,4554.7314,980 5,464 5,7915.9966.168 2,008 18341648 2009E 2010 2011E 2012E 2013E2014E 9 Net Revenue 10 Cost of Sales 11 Gross Margin 12 Selling, General, & Administrative 3,851 3,955 3,461 13 Research & Development 14 Impairment of Goodwill 5 Other Operating Expense 16 Total Operating Expense 17 Operating Income 18 19 Depreciation & Amortization 20 as % of Prior Year PP&E 21 Net PP&IE 22- 1,460 6.083 6967 4.839 4,992 5,12249372 472 309 372 (2236) 141 670 747 796 517 34.4% 1,504 10.8% 476 29.5% 474 29.3% 1,616 536 30.0% 1,520 12.0% 456 30.0% 470 30.0% 487 30.0% 500 30.0% 11 11.6% 1,6 1,566 12.0% 1,623 12.0% 1,666/1,709 12.0% as % of Sales 14.1% 12.0% 24 Data sources: Company filings and case writer estimates 26 30 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 Exhibit 7 Exhibit 8 Exhibit 9/ Exhibit 10Exhibit Ehibit 12 Exhibi 13 Bs O Type here to search