The document contains two methods for repaying a loan. Method 1 repays the principal of $75 million in full in the 7th period, with interest-only payments for the first 6 periods at 11.5% annually. Method 2 repays $5 million per period plus interest at 13.5% annually over 7 periods, fully repaying the $100 million principal. The total repayment under Method 1 is $135.375 million and under Method 2 is $180.325 million.

1. Medthod 1 11.50%
period Principle Interest Repayments Total Payment
1 75,000,000.00 8,625,000.00 8,625,000.00
2 75,000,000.00 8,625,000.00 8,625,000.00
3 75,000,000.00 8,625,000.00 8,625,000.00
4 75,000,000.00 8,625,000.00 8,625,000.00
5 75,000,000.00 8,625,000.00 8,625,000.00
6 75,000,000.00 8,625,000.00 8,625,000.00
7 75,000,000.00 8,625,000.00 75,000,000.00 83,625,000.00
135,375,000.00
Medthod 2 13.50%
period Principle Interest Repayments Total Payments
1 100,000,000.00 Err:522 5,000,000.00 Err:522
2 95,000,000.00 Err:522 5,000,000.00 Err:522
3 90,000,000.00 Err:522 5,000,000.00 Err:522
4 85,000,000.00 Err:522 5,000,000.00 Err:522
5 80,000,000.00 Err:522 5,000,000.00 Err:522
6 75,000,000.00 Err:522 5,000,000.00 Err:522
7 70,000,000.00 Err:522 Err:522
total Err:522

2. Remiander
95,000,000.00
90,000,000.00
85,000,000.00
80,000,000.00
75,000,000.00
70,000,000.00

3. Pinkerton
terminal g 5.00%
R 8.17% 0.7 cf g
IS 1983 1984 1985 1986 1987 average %
net sales 296.4 307.7 312.4 367.7 408.3
8.5% sales growth
cogs 264.5 275.4 286.3 342.5 381.7
91.4% % of sales
operating expenses 15.5 17.1 24.9 24.5 27
6.4% % of sales
ebitda 16.4 15.2 1.2 0.7 -0.4
depreciation - - - - -
other deductions - - - - -
ebit 16.4 15.2 1.2 0.7 -0.4
taxes 4.9 4.6 0.4 0.2 -0.1 30%
ebiat 11.5 10.6 0.8 0.5 -0.3
BS
NWC 22.8 23.6 29.9 36.1 38.8
8.9% % of sales
Net PPE 11 11.3 13.1 15.1 17.6
4.0% % of sales
ebiat
net capex change net PPE
change NWC change NWC
CF
TV
CF+TV
PV $150.35
Method 1

4. Method 2

5. -12.75% -12.50% -66.12% 5.00% 5.00% 5.00%
1988 1989 1990 1991 1992 1993 1994
363.4 323.4 287.8 302.2 317.3 333.2 349.9
-11.0% -11.0% -11.0% 5.00% 5.00% 5.00% 5.00%
332.1 295.6 263.1 276.2 290.1 304.6 319.8
91.4% 91.4% 91.4% 91.4% 91.4% 91.4% 91.4%
21.8 19.1 16.7 17.5 18.4 19.3 20.3
6.0% 5.9% 5.8% 5.8% 5.8% 5.8% 5.8%
9.4 8.7 8.1 8.5 8.9 9.3 9.8
- - - - - - -
- - - - - - -
9.4 8.7 8.1 8.5 8.9 9.3 9.8
2.8 2.6 2.4 2.5 2.7 2.8 2.9
6.6 6.1 5.6 5.9 6.2 6.5 6.9
31.3 23.9 17.8 18.7 19.7 20.7 21.7
8.6% 7.4% 6.2% 6.2% 6.2% 6.2% 6.2%
14.5 12.9 11.5 12.1 12.7 13.3 14.0
4% 4% 4% 4% 4% 4% 4%
6.6 6.1 5.6 5.9 6.2 6.5 6.9
-3.1 -1.6 -1.4 0.6 0.6 0.6 0.7
-7.5 -7.3 -6.1 0.9 0.9 1.0 1.0
17.2 15.0 13.2 4.5 4.7 4.9 5.2
155.13
17.2 15.0 13.2 4.5 159.8
11.50%
period Principle Interest Repayments Total Payment
1 75,000,000.00 8,625,000.00 8,625,000.00
2 75,000,000.00 8,625,000.00 8,625,000.00
3 75,000,000.00 8,625,000.00 8,625,000.00
4 75,000,000.00 8,625,000.00 8,625,000.00
5 75,000,000.00 8,625,000.00 8,625,000.00
6 75,000,000.00 8,625,000.00 8,625,000.00
7 75,000,000.00 8,625,000.00 75,000,000.00 83,625,000.00
135,375,000.00

6. 13.50%
period Principle Interest Repayments Total Payments Remiander
1 100,000,000.00 13,500,000.00 5,000,000.00 18,500,000.00 95,000,000.00
2 95,000,000.00 12,825,000.00 5,000,000.00 17,825,000.00 90,000,000.00
3 90,000,000.00 12,150,000.00 5,000,000.00 17,150,000.00 85,000,000.00
4 85,000,000.00 11,475,000.00 5,000,000.00 16,475,000.00 80,000,000.00
5 80,000,000.00 10,800,000.00 5,000,000.00 15,800,000.00 75,000,000.00
6 75,000,000.00 10,125,000.00 5,000,000.00 15,125,000.00 70,000,000.00
7 70,000,000.00 9,450,000.00 79,450,000.00
total 180,325,000.00

7. 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
1995 1996 1997 1998 1999 2000
367.4 385.7 405.0 425.3 446.5 468.9
5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
335.8 352.6 370.2 388.7 408.1 428.5
91.4% 91.4% 91.4% 91.4% 91.4% 91.4%
21.3 22.4 23.5 24.7 25.9 27.2
5.8% 5.8% 5.8% 5.8% 5.8% 5.8%
10.3 10.8 11.3 11.9 12.5 13.1
- - - - - -
- - - - - -
10.3 10.8 11.3 11.9 12.5 13.1
3.1 3.2 3.4 3.6 3.8 3.9
7.2 7.6 7.9 8.3 8.8 9.2
22.8 23.9 25.1 26.4 27.7 29.1
6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
14.7 15.4 16.2 17.0 17.9 18.8
4% 4% 4% 4% 4% 4%
7.2 7.6 7.9 8.3 8.8 9.2
0.7 0.7 0.8 0.8 0.9 0.9
1.1 1.1 1.2 1.3 1.3 1.4
5.4 5.7 6.0 6.3 6.6 6.9

19. Pinkerton
terminal g
R
IS 1983 1984 1985 1986 1987 average %
net sales 296.4 307.7 312.4 367.7 408.3
8.5% sales growth
cogs 264.5 275.4 286.3 342.5 381.7
91.4% % of sales
Gross Profit 31.9 32.3 26.1 25.2 26.6
8.6% % of sales
operating expenses 15.5 17.1 24.9 24.5 27
6.4% % of sales
ebitda 16.4 15.2 1.2 0.7 -0.4
depreciation
% of net ppe
other deductions
ebit 16.4 15.2 1.2 0.7 -0.4
taxes 7.71 7.14 0.56 0.33 -0.19 47% avg of CPP's tax
ebiat 8.69 8.06 0.64 0.37 -0.21
BS
NWC 22.8 23.6 29.9 36.1 38.8
8.9% % of sales
Net PPE 11 11.3 13.1 15.1 17.6
4.0% % of sales
ebiat
net capex change net PPE
change NWC change NWC
CF
TV
CF+TV
PV

20. cf g
2010 2011 2012 2013 2014
367.5 330.7 297.7 312.5 328.2
-10.0% -10.0% -10.0% 5.0% 5.0%
338.6 299.3 263.2 274.6 286.3
28.9 31.5 34.4 38.0 41.9
8.50% 9.00% 9.50% 10.25% 10.25%
22.0 19.5 17.3 18.1 19.0
6.0% 5.9% 5.8% 5.8% 5.8%
6.8 11.9 17.2 19.9 22.8
6.8 11.9 17.2 19.9 22.8
3.2 5.6 8.1 9.3 10.7
3.6 6.3 9.1 10.5 12.1
31.6 24.5 18.5 19.4 20.3
8.6% 7.4% 6.2% 6.2% 6.2%
14.7 13.2 11.9 12.5 13.1
4% 4% 4% 4% 4%
3.6 6.3 9.1 10.5 12.1
-2.9 -1.5 -1.3 0.6 0.6
-7.2 -7.1 -6.0 0.9 1.0
13.7 14.9 16.4 9.0 10.5