Message-ID: <23048355.1075859050678.JavaMail.evans@thyme> Date: Fri, 23 Mar 2001 13:11:17 -0800 (PST) From: rod.hayslett@enron.com To: denis.tu@enron.com Subject: RE: Pre-Tax Return Cc: tracy.geaccone@enron.com, james.centilli@enron.com, dave.waymire@enron.com, michael.ratner@enron.com, steve.gilbert@enron.com, john.keiser@enron.com, david.rosenberg@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: tracy.geaccone@enron.com, james.centilli@enron.com, dave.waymire@enron.com, michael.ratner@enron.com, steve.gilbert@enron.com, john.keiser@enron.com, david.rosenberg@enron.com X-From: Hayslett, Rod X-To: Tu, Denis X-cc: Geaccone, Tracy , Centilli, James , Waymire, Dave , Ratner, Michael , Gilbert, Steve , Keiser, John , Rosenberg, David X-bcc: X-Folder: \TGEACCO (Non-Privileged)\Geaccone, Tracy\GPG X-Origin: Geaccone-T X-FileName: TGEACCO (Non-Privileged).pst I just remembered it as a 7 versus a 2. You are right. -----Original Message----- From: Tu, Denis Sent: Friday, March 23, 2001 2:52 PM To: Hayslett, Rod Subject: Pre-Tax Return Did I miss something? 60% Debt at 7.5% 40% Equity at 15% Income Tax Rate at 38.5% Pre-tax return: =7.5% x 60% + (15% x 40%) / (100% - 38.5%) =4.5% + 9.76% =14.26%