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(1) See Exhibit D for general assumptions.
(2) Base case assumes existence of accelerated depreciation, class life system, and

investment credit for all years.

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(1) See Exhibit D for general assumptions. (2) This alternative assumes that the tax incentives are terminated as of beginning of year 1, and the capital so provided is replaced by debt bearing interest at 8% per annum.

NOTES:

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(2) This alternative assumes that the tax incentives are terminated as of beginning of year 1, and the capital so provided is replaced by debt bearing interest at 8% per annum.

NOTES:

MODEL COMPANY

ALTERNATIVE CASE ASSUMING TERMINATION OF TAX INCENTIVES
AND APPLICATION OF BASE CASE FINANCIAL RATIOS

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EXHIBIT C

Page 1 of 2

End of Year

Beginning
of Year 1

1

2

3

4

5

6

7

8

9

10

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Total liabilities

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$ 6,000

6,000

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$ 6,000 6,737 7,383 8,022 $12,737 $13,383 $14,022

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Total liabilities and stockholders' equity $25,473

$27,601

$29,455

$31,337

$33,218 $35,154 $37,128

$39,186

$40,938

$43,607

$ 46,362

NOTES:

(1) See Exhibit D for general assumptions. (2) This alternative assumes that the tax incentives were terminated as of the beginning of year 1, and the capital so provided is replaced by debt bearing interest at 8% per annum. The amount of debt is limited to an amount which will give rise to the same total debt to equity and tax incentives ratio as reflected in the base case. Sales are limited to the same relationship to the various asset accounts as existed in the base case, Exhibit A. All other assumptions measured by sales volume are similarly limited.

MODEL COMPANY

ALTERNATIVE CASE ASSUMING TERMINATION OF TAX INCENTIVES

AND APPLICATION OF BASE CASE FINANCIAL RATIOS

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EXHIBIT C

Page 2 of 2

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(1) See Exhibit D for general assumptions.
(2) This alternative assumes that the tax incentives are terminated as of the beginning of
year 1, and the capital so provided is replaced by debt bearing interest at 8%
per annum. The amount of debt is limited to an amount which will give rise to
the same total debt to equity and tax incentives ratio as reflected in the base case.
Sales are limited to the same relationship to the various asset accounts as existed
similarly limited.
in the base case, Exhibit A. All other assumptions measured by sales volume are

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