Revenue 13046EBIT 391.98Margin 3.00%CoC 8.51%Tax Rate 36%

Current After 5 yearsBeta 1.15 1After Tax Kd 5% 4%Debt Ratio 10% 10%Treasury Bond rate 6% 6%Market Premium 5.50% 5.50%Ke 12.33% 11.50%WACC 11.59% 10.75%Capital Exp 475.00 678.61Depriciation 461.00 616.92199127Working Capital/revenue 15.00% 15.00%Growth rate for next 5 years 6% 5%

1 2 3 4 5EBIT(1-t)(1+g) 250.87 265.92 281.87 298.79 316.71 335.72(-) (Capex-dep)*(1+g) -14.00 -14.84 -15.73 -16.67 -17.67 -18.74Working Cap -1956.90 -2074.31 -2198.77 -2330.70 -2470.54 -2618.77(-)Change in WC -1956.90 -117.41 -124.46 -131.93 -139.84 -148.23CF -1720.03 133.67 141.69 150.19 159.20 168.75TV 2726.735FCFF 133.67 141.69 150.19 159.20 2895.48NPV $2,117.48 Less: Debt -1006Equity $1,111.48 No of Shares 146.789MP $7.57

6352.50-64.78

-2749.71-130.94156.79

Revenue 13046EBIT 521.84Margin 4.00%CoC 8.51%Tax Rate 36%

Current After 5 yearsBeta 1.15Unlevered Beta 1.07Levered at 20% 1.25 1.00After Tax Kd 5.25% 4%Debt Ratio 20% 20%Treasury Bond rate 6% 6%Market Premium 5.50% 5.50%Ke 12.85% 11.50%WACC 11.33% 10.00%Capital Exp 475.00 816.69Depriciation 461.00 742.44511Working Capital/revenue 15.00% 15.00%Growth rate for next 5 years 10% 5%

1 2 3 4 5EBIT(1-t)(1+g) 333.98 367.38 404.11 444.52 488.98 537.87(-) (Capex-dep)*(1+g) -14.00 -15.40 -16.94 -18.63 -20.50 -22.55Working Cap -1956.90 -2152.59 -2367.85 -2604.63 -2865.10 -3151.61(-)Change in WC -1956.90 -195.69 -215.26 -236.78 -260.46 -286.51CF -1636.92 156.29 171.91 189.11 208.02 228.82TV 6584.618FCFF 156.29 171.91 189.11 208.02 6813.44NPV $4,535.42 Less: Debt

6564.77-77.96

-3309.19-157.58329.23

Revenue 25484EBIT 2987Margin 11.72%CoC 8.51%Tax Rate 36%

Current After 5 yearsBeta 1.25 1.00Unlevered Beta 1.17After Tax Kd 5.00% 4%Debt Ratio 10% 20%Equity 90% 80%Treasury Bond rate 6% 6%Market Premium 5.50% 5.50%Ke 12.88% 11.50%WACC 12.09% 10.00%Capital Exp 184.00 283.45Depriciation 160.00 257.6816Working Capital/revenue 15.00% 15.00%Growth rate for next 5 years 10% 5%

1 2 3 4 5EBIT(1-t)(1+g) 1911.68 2102.85 2313.13 2544.45 2798.89 3078.78(-) (Capex-dep)*(1+g) -24.00 -26.40 -29.04 -31.94 -35.14 -38.65Working Cap -3822.60 -4204.86 -4625.35 -5087.88 -5596.67 -6156.34(-)Change in WC -3822.60 -382.26 -420.49 -462.53 -508.79 -559.67CF -1934.92 1694.19 1863.61 2049.97 2254.96 2480.46TV 57956.91FCFF 1694.19 1863.61 2049.97 2254.96 60437.37NPV $40,039.28 Less: Debt 3200Equity $36,839.28 Shares 1305.76MP $28.21

63232.72

-27.06-6464.15

-307.822897.85

Revenue 25484EBIT 2987Margin 11.72%CoC 8.51%Tax Rate 36%

Current After 5 years digital CompaqBeta 1.16 1.00 Beta 1.07 1.17After Tax Kd 5.00% 4% NPV 4535.42 40039.28Debt Ratio 13.64% 20% Weight 0.10 0.90Equity 86.36% 80% Unlevered Beta 0.11 1.05Treasury Bond rate 6% 6%Market Premium 5.50% 5.50%Ke 12.37% 11.50%WACC 11.36% 10.00%Capital Exp 184.00 289.95Depriciation 160.00 263.59Working Capital/revenue 15.00% 15.00%Growth rate for next 5 years 10.50% 5%

1 2 3 4 5EBIT(1-t)(1+g) 2226.55 2460.33 2718.67 3004.13 3319.56 3668.12(-) (Capex-dep)*(1+g) -38.00 -41.99 -46.40 -51.27 -56.65 -62.60Working Cap -5779.50 -6386.35 -7056.91 -7797.89 -8616.67 -9521.42(-)Change in WC -5779.50 -606.85 -670.57 -740.98 -818.78 -904.75CF -3590.95 1811.50 2001.70 2211.88 2444.13 2700.76TV 66955.52FCFF 1811.50 2001.70 2211.88 2444.13 69656.28NPV $47,102.51 Synergy $2,527.81

MP of Digital 7.57MP of Compaq 28.21Exchange ratio 3.73

44574.70

1.16

63851.52

-27.68-9997.49

-476.073347.78