Exhibit-1

Return on Equity
Debt/Total Capital (Leverage)
Net Income
Book Values
Debt
Equity
Total Capital
Market Values
Debt
Equity
Market Value of Capital
Tax rate
Return on Equity

Exhibit-2

in 000s
Actual

in 000s
10%

20,299

19,359

225,888
225,888

22,589
203,299
225,888

643,773
643,773
32.50%

22,589
628,516
651,105
32.50%

8.99%

9.52%

Cost Of Equity
Debt/Total Capital (Leverage)
Beta of Asset (Ba)
Beta of Equity (Be)
Risk Free Rate (Rf)
Return on Market (Rm)
Market Risk Premium (Rm-Rf)
Cost Of Equity (Rs)

Actual

10%

0.85
0.850
5.20%
9.00%
3.80%
8.43%

0.85
0.871
5.20%
9.00%
3.80%
8.51%

in 000s
20%

in 000s
30%

18,419

17,480

45,178
180,710
225,888

67,766
158,122
225,888

45,178
613,259
658,437
32.50%

67,766
598,002
665,768
32.50%

10.19%

11.05%

Formula:
Beta of Equity:
Be = Ba*[1+(1-t)B/S]

20%

30%

0.85
0.892
5.20%
9.00%
3.80%
8.59%

0.85
0.915
5.20%
9.00%
3.80%
8.68%

Cost of Equity using CAPM:

Rs = Rf+Be*(Rm-Rf)

Exhibit-3

Calculation of WACC
Debt/Total Capital (Leverage)
Cost of Equity (Rs)
Cost of Debt (Rb)
Weight of Equity (ws)
Weight of Debt (wb)
Tax rate
(1-t)
WACC

Exhibit-4

Actual

10%

8.43%
6.16%
100%
0%
32.50%
67.50%
8.43%

8.51%
6.16%
96.53%
3.47%
32.50%
67.50%
8.36%

in 000s
Actual

in 000s
10%

Share Price and EPS

Debt/Total Capital (Leverage)
No. of Shares
Market Value of Capital
New Share Price (after announcemen
Debt
Shares repurchased
Shares Outstanding
Earning per share (EPS)

29,130
643,773
22.10
29,130.00
0.70

29,130
651,105
22.35
22,589
1,010.62
28,119.38
0.69

20%

30%

8.59%
6.16%
93.14%
6.86%
32.50%
67.50%
8.29%

8.68%
6.16%
89.82%
10.18%
32.50%
67.50%
8.22%

in 000s
20%

in 000s
30%

29,130
658,437
22.60
45,178
1,998.73
27,131.27
0.68

29,130
665,768
22.86
67,766
2,965.03
26,164.97
0.67

Using market value weights