g space (?)
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B
C
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TYSON, CORP. INFORMATION FOR 2005 & 2004
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2005
2004
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Share outstanding
354,820,000
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Share price, end of 2005, P0
?
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Equity value, E (“market cap”)
4,772,329,000
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7
Current dividend, D0
0.16
8 Anticipated dividend growth rate, g
0%
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Gordon model cost of equity, rE
?
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11 Tyson beta, β
0.20
12 Expected market return, E(rM)
?
13 Risk free rate, rf
4.93%
14 Market risk premium, E(rM)-rf
4.19%
15 Tax rate, TC
?
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17 CAPM cost of equity, rE:
18 Classical CAPM
?
19 Tax adjusted CAPM
?
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21 Cash and cash equivalents
12,000,000
13,000,000
22 Short-term investments
?
20,000,000
23 Total liquid assets
40,000,000
?
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25 Short-term debt
?
38,000,000
26 Current portion of long-term debt
100,000,000
300,000,000
27 Long-term debt
2,869,000,000
?
28 Total financial debt
2,995,000,000
3,362,000,000
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30 Net debt
2,955,000,000
3,329,000,000
31 Interest income (earned)
112,000,000
120,000,000
32 Interest paid (expense)
339,000,000
?
33 Net interest paid (expense)
?
300,000,000
34 Implied cost of debt, rD
?
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36 Income before tax
2,070,000
2,200,000
37 Income tax expense
611,685
?
38 Tax rate, TC
?
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