Year Ended Jun-30, (MM USD)

ASSUMPTIONS
Sales growth rate
Net operating profits after tax / sales
Beg. net operating working capital / sales
Beg. net operating long-term assets / sales
BOOK VALUE LEVERAGE (beg. of year)
Net debt / book value of net capital
Preferred equity / book value of net capital
Shareholders' equity / book value of net capital

2006

5.26%

2007

2008

2009

2010

2011

2012

2013

2014

2015

18.11%
5.46%
26.00%
19.71%

1.21%
3.99%
32.14%
21.67%

-6.21%
0.41%
37.43%
23.69%

3.14%
3.45%
34.34%
24.78%

5.00%
5.00%
29.23%
22.85%

5.00%
6.50%
28.50%
23.00%

10.70%
7.50%
28.00%
23.00%

10.70%
7.50%
28.00%
23.00%

10.70%
7.50%
28.00%
23.00%

46.09%
0.00%
53.91%
100.00%

47.72%
0.00%
52.28%
100.00%

48.55%
0.00%
51.45%
100.00%

48.39%
0.00%
51.61%
100.00%

41.56%
0.00%
58.44%
100.00%

46.00%
0.00%
54.00%
100.00%

46.00%
54.00%
100.00%

40.00%
0.00%
60.00%
100.00%

40.00%

40.00%

60.00%
100.00%

60.00%
100.00%

5.00%
4.48%
16.00%
7.75%
0.00%
0.65

5.00%
4.48%
16.00%
7.75%

5.00%
4.48%
16.00%
7.75%

0.65

0.65

1.47
1.14

1.47
1.14

1.47
1.14

1.14

1.14

6.51%
11.83%
9.70%
9.60%
11.80%

6.51%
11.83%
9.70%
12.62%
17.83%

6.51%
11.83%
9.70%
14.71%
21.69%

6.51%
11.83%
9.70%
14.71%
21.69%

6.51%
11.83%
9.70%
14.71%
14.71%

MARKET VALUE LEVERAGE (beg. of year)

Net debt / mkt value of net capital
Preferred equity / mkt value of net capital
Shareholders' equity / mkt value of net capital
COST OF CAPITAL PARAMETERS
Market risk premium
Risk free rate
Tax rate
Cost of debt
Cost of preferred equity (if applicable)
Implied debt beta
Implied preferred equity beta
Common equity beta
Implied asset beta
After tax cost of debt
Cost of common equity
Weighted average cost of capital (WACC)
Operating return on assets
Return on common equity

6.81%
4.41%

11.96%
13.43%

7.42%
6.20%

0.67%
-1.87%

5.84%
5.76%

2016

2017

2018

2019

9.90%
8.00%
28.00%
23.00%

9.90%
8.00%
28.00%
23.00%

3.75%
8.00%
30.00%
23.00%

3.75%
8.00%
30.00%
23.00%

1.14

1.14

6.51%
11.83%
9.70%
15.69%
15.69%

6.51%
11.83%
9.70%
15.69%
15.69%

6.51%
11.83%
9.70%
15.09%
15.09%

6.51%
11.83%
9.70%
15.09%
15.09%