Page 122 - DMGT405_FINANCIAL%20MANAGEMENT

Financial Management

Notes Exhibit 3: Sensitivity of Equity Value of Discount Rate

Discount rate Equity value
8.00% $75.80
8.50 67.85
9.00 61.25
9.50 55.68
10.00 50.92
10.50 46.81
11.00 43.22
11.17 42.09
11.50 40.07
12.00 37.27

Exhibit 4: Consolidated Balance Sheets (in millions) May 31
2005 2006
Assets
Current assets
Cash and equivalents $254.3 $304.0
Accounts receivable 1,569.4 1,621.4
Inventories 1,446.0 1,424.0
Deferred income taxes 111.5 113.3
Prepaid expenses 215.2 162.5
Total Current assets 3,596.4 3,625.3

Property, plant and equipment, net 1,583.4 1,618.8
Identifiable, intangible assets and goodwill, net 410.9 397.3
Deferred income taxes and other assets 266.2 178.2
Total assets $5,856.9 $5,819.6
Liabilities and shareholder's equity
Current Liabilities
Current portion of long-term debt $50.1 $5.4
Notes payable 924.2 855.3
Accounts payable 543.8 432
Accrued liabilities 621.9 472.1
Income taxes payable ----- 21.9
Total current liabilities 2,140.0 1,786.7
Long-term debt 470.3 435.9
Deferred income taxes and other liabilities 110.3 102.2
Redeemable preferred stock 0.3 0.3
Share holder equity
Common stock, par 2.8 2.8
Capital in excess of stated value 369.0 459.4
Unearned stock comper 11.7 9.9
Accumulated other comprehensive income 111.1 152.1
Retained earnings 2887.0 3194.3
Total share holder equity 3136.0 3494.5
Total liabilities and shareholder's equity $5,856.9 $5,819.6

Contd...

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