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					COMPANY ABC
BUSINESS ENTERPRISE VALUATION OF COMPANY ABC
AS OF DECEMBER 31, 2001
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
SUMMARY




WACC Methodology                               WACC

Capital Asset Pricing Model                           #DIV/0!

PwC Size-Return Study                                 #DIV/0!


                              Concluded WACC          #DIV/0!
COMPANY ABC
BUSINESS ENTERPRISE VALUATION OF COMPANY ABC
AS OF DECEMBER 31, 2001
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
($ IN THOUSANDS, EXCEPT SHARE PRICE)
CAPITAL ASSET PRICING MODEL


 Assumptions                                                                                                                                    Source:
 Valuation Date                                                          31-Dec-02
 Stock Price Date                                                        31-Dec-02
 Risk-free Rate                                                          Rf =                                                      0.0%         Federal Statistical Release (20-Year Treasury)
 Pretax Required Rate on Debt Capital                                    i =                                                       0.0%         Yield on Notes Due 2008
 Equity Risk Premium                                                     Rp =                                                      5.0%         Composite
 Small Stock Premium                                                     Ssp =                                                     0.0%         Ibbotson
 Alpha                                                                   A =                                                       0.0%         Company Characteristics



 Tax Rate Calculation
 Federal Corporate Income Tax Rate                                                                                                 35.0%
 State Income Tax Rate                                                                                                              0.0%
  Effective Income Tax Rate (t) (Rounded)                                                                                          35.0%


 Industry Capital Structure Analysis
                                                                                                                                                   Common                        Market
                                                                                               Total Gross              Common Share                Shares                       Value of                  Total Capital
                                                                             Ticker            Debt (D) (1)       + (      Price           x      Outstanding       =           Equity (E)       ) =        (D+E) (2)

 Company 1                                                                                                    -                      -                        -                              -                             -
 Company 2                                                                                                    -                      -                        -                              -                             -
 Company 3                                                                                                    -                      -                        -                              -                             -
 Company 4                                                                                                    -                      -                        -                              -                             -
 Company 5                                                                                                    -                      -                        -                              -                             -
 Company 6                                                                                                    -                      -                        -                              -                             -
 Company 7                                                                                                    -                      -                        -                              -                             -
 Company 8                                                                                                    -                      -                        -                              -                             -
 Company 9                                                                                                    -                      -                        -                              -                             -
 Company 10                                                                                                   -                      -                        -                              -                             -
 Company 11                                                                                                   -                      -                        -                              -                             -
 Company 12                                                                                                   -                      -                        -                              -                             -
 Company 13                                                                                                   -                      -                        -                              -                             -
 Company 14                                                                                                   -                      -                        -                              -                             -
 Company 15                                                                                $                  -         $            -                        -             $                -         $                   -



                                                                          0 = exclude             Beta                                              D/Total                 Effective Income                Unlevered
                                                                          1 = include          (Projected)                   D/E                    Capital                   Tax Rate (t)                   Beta (3)

 Company 1                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 2                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 3                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 4                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 5                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 6                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 7                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 8                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 9                                                                            0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 10                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 11                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 12                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 13                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 14                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00
 Company 15                                                                           0                       -                    0.0%                     0.0%                        35.0%                           0.00

                                 Industry Average                                                #DIV/0!                                                  #DIV/0!       0                                           #DIV/0!
   Included in Averages


 Relevered Beta Analysis
 Unlevered Beta                                                                                  #DIV/0!
  Industry Debt-to-Equity Ratio (Debt/Capital over Equity/Capital)                               #DIV/0!
 Effective Income Tax Rate                                                                            35.00%
 Relevered Beta (B) (3)                                                                          #DIV/0!



 WACC Calculation
                                                                                           Required Return                                         Weighting                                                 WACC
 Required Return on Debt Capital [ i * (1 - t) ] =                                                   0.00%                    x                        #DIV/0!                      =                            #DIV/0!
 Required Return on Equity Capital [ Rf + B (Rp) + Ssp +A ] =                                 #DIV/0!                         x                        #DIV/0!                      =                            #DIV/0!

                                                                                                                                                                                                                    #DIV/0!

                                                                                                                                                                            Rounded                                 #DIV/0!

 Definitions & Footnotes
 (1) Total Gross Debt excludes minority interest liabilities and includes preferred stock; gross debt indicates cash has not been subtracted.
 (2) Total Capital excludes minority interest liabilities.
 (3) Levering Calculations:
      Unlevered Beta = Beta (Observed) / [1 + D/E ( 1 - t )]
      Relevered Beta = Unlevered Beta * [ 1 + D/E ( 1 - t )]
COMPANY ABC
BUSINESS ENTERPRISE VALUATION OF COMPANY ABC
AS OF DECEMBER 31, 2001
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
PwC SIZE-RETURN STUDY


                                                                                                         Total Equity Risk
                                                                                                        Premium Indicated
Size-Return Study Factor                                                                                    by Factor
Market Value of Equity                                                                                               12.9%
Book Value of Equity                                                                                                 12.2%
5-Year Average Net Income                                                                                            12.8%
Market Value of Invested Capital                                                                                     12.8%
Total Assets                                                                                                         12.4%
5-Year Average EBITDA                                                                                                12.5%
Sales                                                                                                                11.7%
Number of Employees                                                                                                  11.5%
                                                                                              Average                12.4%



Required Return on Debt Capital                                                                         Required Returns
Pretax Required Return on Debt Capital                                                                                0.0%
Effective Income Tax Rate                                                                                            35.0%
 Required Rate on Debt Capital                                                                                        0.0%


Required Return on Equity Capital
Average Total Equity Risk Premium Indicated by Factors                                                               12.4%
Plus: Alpha                                                                                                           0.0%
Adjusted Total Equity Risk Premium                                                                                   12.4%
Plus: Risk-Free Rate                                                                                                  0.0%
 Required Return on Equity Capital                                                                                   12.4%



WACC Calculation
                                                           Required Return       Weighting                   WACC

 Required Rate on Debt Capital                                       0.0%    x      #DIV/0!    =                    #DIV/0!
 Required Return on Equity Capital                                  12.4%    x      #DIV/0!    =                    #DIV/0!

                                                                                                                    #DIV/0!

                                                                                  Rounded:                          #DIV/0!


Definitions & Footnotes
EBITDA = Earnings Before Interest, Taxes, and Depreciation & Amortization
COMPANY ABC                                                                                            [You will need to update this sheet with the appropriate data for year ending                                                                                                                                                                                    SUPPORT
BUSINESS ENTERPRISE VALUATION OF COMPANY ABC                                                            closest to your valuation date. Be sure not to delete or move rows/columns.
AS OF DECEMBER 31, 2001                                                                                Recommend copying and pasting ONLY VALUES for relevant source file.]
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
(USD in Millions)
DATA

Historical Equity Risk Premiums: Averages Since 1963
Data for Year Ending December 31, 1998


                                      Market Value of Equity                         Book Value of Equity                     5-Year Average Net Income              Market Value of Invested Capital                     Total Assets                         5-Year Average EBITDA                             Sales                            Number of Employees

                                            Arithmetic   Smoothed                         Arithmetic   Smoothed                       Arithmetic   Smoothed                     Arithmetic   Smoothed                      Arithmetic    Smoothed                    Arithmetic   Smoothed                     Arithmetic   Smoothed                   Arithmetic   Smoothed
                                Average      Average      Average             Average      Average      Average            Average     Average      Average         Average      Average      Average          Average      Average       Average         Average     Average      Average          Average     Average      Average                    Average      Average
                                ($mils.)    Premium      Premium              ($mils.)    Premium      Premium             ($mils.)   Premium      Premium          ($mils.)    Premium      Premium           ($mils.)    Premium       Premium          ($mils.)   Premium      Premium           ($mils.)   Premium      Premium          Average   Premium      Premium

                           25         44        15.3%           12.9%    25         27        13.6%          12.2%    25          1       13.3%       12.8%    25         62        15.1%        12.8%    25         57        13.5%        12.4%    25          7       12.7%         12.5%   25         55       13.1%       11.7%    25       195       12.9%         11.5%    25
                           24        124        12.1%           11.5%    24         65        11.1%          11.1%    24          4       11.1%       11.6%    24        168        11.7%        11.5%    24        143        12.3%        11.3%    24         18       12.3%         11.4%   24        145       11.1%       10.9%    24       533       10.4%         10.8%    24
                           23        179        11.8%           11.0%    23         93        10.4%          10.6%    23          6       11.5%       11.1%    23        255        10.1%        10.9%    23        200        11.7%        10.9%    23         24       12.3%         11.1%   23        206       12.4%       10.6%    23       848       10.6%         10.4%    23
                           22        234        10.3%           10.7%    22        117        11.1%          10.3%    22          9       12.1%       10.7%    22        332        11.5%        10.6%    22        268         9.9%        10.5%    22         32       11.2%         10.8%   22        262       10.0%       10.4%    22     1,166       10.7%         10.2%    22
                           21        305        10.6%           10.3%    21        141        10.1%          10.1%    21         11       11.2%       10.5%    21        422        10.0%        10.2%    21        322         8.3%        10.3%    21         37       10.5%         10.6%   21        310        9.1%       10.2%    21     1,454        9.4%         10.1%    21
                           20        386         8.8%           10.0%    20        175        10.6%           9.8%    20         13       10.8%       10.3%    20        514        10.1%        10.0%    20        370        10.5%        10.2%    20         43        8.5%         10.4%   20        382        9.4%       10.1%    20     1,766       11.2%          9.9%    20
                           19        448         9.6%            9.8%    19        202         9.1%           9.7%    19         16        9.3%       10.1%    19        595         9.3%         9.8%    19        438        10.1%        10.0%    19         54       11.0%         10.2%   19        449        9.7%        9.9%    19     2,148        8.3%          9.8%    19
                           18        510         9.8%            9.6%    18        225         8.1%           9.5%    18         19        9.8%        9.9%    18        714         8.5%         9.5%    18        534         9.8%         9.7%    18         66       10.0%          9.9%   18        545        8.9%        9.8%    18     2,580        8.8%          9.6%    18
                           17        616         8.3%            9.4%    17        263         8.4%           9.3%    17         22       11.5%        9.7%    17        834         9.0%         9.3%    17        623         9.2%         9.6%    17         76       10.9%          9.8%   17        631       10.9%        9.6%    17     3,124        7.7%          9.5%    17
                           16        753         9.1%            9.1%    16        297        10.0%           9.2%    16         27        8.5%        9.5%    16      1,013         8.7%         9.1%    16        715        10.0%         9.4%    16         86       10.0%          9.7%   16        709        7.9%        9.5%    16     3,712        9.5%          9.4%    16
                           15        875         8.8%            8.9%    15        354         9.0%           8.9%    15         32        9.1%        9.3%    15      1,186        10.0%         8.9%    15        847         9.6%         9.2%    15        106        8.4%          9.4%   15        807        8.4%        9.4%    15     4,167       10.4%          9.3%    15
                           14      1,015         8.6%            8.7%    14        395         8.9%           8.8%    14         39        8.0%        9.1%    14      1,398         9.0%         8.7%    14      1,001        10.9%         9.0%    14        121        8.0%          9.3%   14        956        8.5%        9.3%    14     5,058        7.9%          9.2%    14
                           13      1,190         7.4%            8.5%    13        450         7.7%           8.6%    13         43        9.1%        8.9%    13      1,618         8.9%         8.5%    13      1,207         8.3%         8.8%    13        146       10.6%          9.0%   13      1,046       10.0%        9.2%    13     5,759        9.1%          9.1%    13
                           12      1,431         8.8%            8.2%    12        531         9.4%           8.4%    12         51        8.3%        8.8%    12      1,900         8.6%         8.2%    12      1,342         6.6%         8.7%    12        170        9.5%          8.9%   12      1,235       11.8%        9.1%    12     6,747        9.2%          9.0%    12
                           11      1,733         8.0%            8.0%    11        634         9.7%           8.2%    11         61        9.7%        8.5%    11      2,326         5.9%         8.0%    11      1,494         8.2%         8.5%    11        202        8.5%          8.7%   11      1,457        8.6%        8.9%    11     7,406        9.1%          8.9%    11
                           10      2,072         7.6%            7.7%    10        701         6.7%           8.1%    10         77        6.6%        8.3%    10      2,652         6.6%         7.8%    10      1,834         7.0%         8.3%    10        235        7.6%          8.5%   10      1,702        8.5%        8.8%    10     8,808        9.1%          8.8%    10
                            9      2,485         6.4%            7.5%    9         834         6.5%           7.9%    9          91        7.7%        8.1%    9       2,958         7.3%         7.7%    9       2,209         7.4%         8.1%    9         275        6.2%          8.3%   9       2,073        6.1%        8.6%    9     10,527        9.2%          8.6%    9
                            8      2,816         7.3%            7.3%    8         982         6.5%           7.7%    8         105        7.3%        7.9%    8       3,856         6.1%         7.3%    8       2,653         6.4%         7.9%    8         354        7.0%          8.0%   8       2,512        7.5%        8.4%    8     12,325        7.9%          8.5%    8
                            7      3,440         6.7%            7.0%    7       1,187         7.0%           7.4%    7         124        6.7%        7.7%    7       4,587         7.5%         7.1%    7       3,278         7.2%         7.6%    7         408        7.7%          7.9%   7       3,301        8.3%        8.2%    7     15,322        7.2%          8.4%    7
                            6      4,342         6.3%            6.7%    6       1,496         7.5%           7.1%    6         147        8.9%        7.6%    6       5,839         7.9%         6.7%    6       4,332         8.1%         7.3%    6         509        7.5%          7.6%   6       3,897        7.9%        8.1%    6     19,995        8.9%          8.2%    6
                            5      5,357         5.0%            6.4%    5       1,790         6.8%           6.9%    5         195        6.1%        7.2%    5       7,459         5.6%         6.4%    5       5,506         7.6%         7.0%    5         667        7.8%          7.3%   5       4,940        8.5%        7.9%    5     25,670        8.8%          8.0%    5
                            4      7,417         6.5%            6.0%    4       2,303         5.6%           6.6%    4         268        5.8%        6.9%    4       9,406         5.2%         6.1%    4       7,215         6.4%         6.7%    4         901        6.2%          7.0%   4       6,733        8.4%        7.6%    4     33,745        8.2%          7.8%    4
                            3     10,011         4.1%            5.6%    3       3,150         6.7%           6.2%    3         401        6.0%        6.4%    3      14,066         5.4%         5.6%    3       9,823         7.1%         6.3%    3       1,306        6.8%          6.6%   3       9,127        7.9%        7.3%    3     43,921        7.9%          7.6%    3
                            2     16,054         4.9%            4.9%    2       5,037         5.5%           5.6%    2         625        6.3%        5.9%    2      21,551         4.8%         5.0%    2      15,937         5.4%         5.8%    2       1,929        5.6%          6.1%   2      13,187        6.1%        7.0%    2     67,920        7.4%          7.3%    2
                            1     64,877         6.6%            3.0%    1      12,407         6.6%           4.5%    1       2,207        6.8%        4.5%    1      80,044         6.0%         3.3%    1      47,803         6.0%         4.5%    1       6,339        7.1%          4.8%   1      40,333        7.4%        6.1%    1    184,237        6.6%          6.6%    1

Constant                                                        0.1806                                       0.1630                                   0.1318                                     0.1832                                     0.1707                                   0.1467                                    0.1515                                    0.1526
Slope                                                          -0.0312                                      -0.0289                                  -0.0260                                    -0.0307                                    -0.0269                                  -0.0260                                   -0.0197                                   -0.0165
Convert Subject Company Results to Millions

COMPANY ABC
Implied Basket                      25                                            25                                           25                                       25                                         25                                         25                                        25                                       25
Implied Smoothed Premium         12.9%                                         12.2%                                        12.8%                                    12.8%                                      12.4%                                      12.5%                                     11.7%                                    11.5%

				
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