Subject: RE: Pre-Tax Return
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 23 Mar 2001 13:11:17 -0800 (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%