UV1373 NAU Wrigley Company Finance Case Study Essay

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User Generated

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Fcnegn051

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Business Finance

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Northern Arizona University

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Remember to use these questions to help guide you to understanding the problem and the environment as you propose alternative strategies and solutions. Do not provide answers to these questions in a list format.

What is Blanka Dobrynin trying to accomplish through her active-investor strategy?
If Wrigley issues $3 billion in new debt and uses the proceeds to either pay a dividend or repurchase shares, what will be the effects on:
1. Number of outstanding shares
2. Book value of equity
3. Share price
4. EPS
5. Interest coverage ratio
6. Wrigley family voting control
What is the current WACC?
What would you expect to happen to Wrigley's WACC if it issued $3 billion in debt and used the proceeds to pay a dividend or repurchase shares?
Should Blanka Dobrynin try to convince the directors to undertake capitalization?

Exhibits are attached below in spreadsheet format.

Please use the following format:

The case study has two parts. Exhibits, etc. should be included if necessary.

Executive Summary (required for all assignments, not to exceed three double-spaced pages)
1. Introduction: Here, you will provide general background information for the case and introduce the main issue. This should be a single, short paragraph. Use your own words, not words from the case author.
2. Problem statement: Isolate the key issues from the case. When possible, quantify the problem (for example, "The Acme Company does not have sufficient capacity to meet the forecasted demand of 10 million units per year".) This should be a few sentences at most combined into a paragraph.
3. Environmental Analysis: Use up to two pages to succinctly describe the various issues that need to be considered. This is where you can summarize your analysis and incorporate the relative strengths and weaknesses. Discuss resources, market forces, competition, technology, etc.
4. Alternative Strategies: As appropriate, outline the two or three possible approaches that a manager can take. There does not need to be an exhaustive and comprehensive analysis of each, but a recognition that there is rarely one solution to a problem. This is your opportunity to demonstrate clear and logical reasoning.
5. Recommendations: Identify your selected strategy from the choices presented in section D. Here is where you should elaborate on the reasoning for your choice. Your strategy must be stated specifically and also be possible for the manager to implement.
Exhibits, tables, financial analysis and formulas (when necessary): If your case write-up references new calculations or quantitative analysis, you should prepare formal exhibits, tables, financial analyses and worked out formulas. These should be prepared professionally (i.e. not hand-written), ordered logically, numbered and referenced in the executive summary.

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For the exclusive use of J. Hu, 2019. UV1373 Version 3.1 THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Interest rates are at their lowest point in 50 years. Yet the use of debt financing by corporations is declining—this happens anyway in a recession. And some deleveraging is due to strategic changes in an industry, such as technological innovation or other developments that increase business risk. But corporate deleveraging seems to have gone too far. CEOs are missing valuable opportunities to create value for their shareholders. In the extreme case, you have mature firms who use no debt at all! Take William Wrigley Jr. Company, for instance. It has a leading market share in a stable low-technology business—it makes chewing gum—and yet has no debt. I bet that if we could persuade Wrigley’s board to do a leveraged recapitalization through a dividend or major share repurchase, we could create significant new value. Susan, please run some numbers on the potential change in value. And get me the names and phone numbers of all of Wrigley’s directors. With those words, Blanka Dobrynin, managing partner of Aurora Borealis LLC, asked Susan Chandler, an associate, to initiate the research for a potential investment in Wrigley. Aurora Borealis was a hedge fund with about $3 billion under management and an investment strategy that focused on distressed companies, merger arbitrage, change-of-control transactions, and recapitalizations. Dobrynin had immigrated to the United States from Russia in 1991, and had risen quickly to become partner at a major Wall Street firm. In 2000, she founded Aurora Borealis to pursue an “active-investor” strategy. Her typical mode of operation was to identify opportunities for a corporation to restructure, invest significantly in the stock of the target firm, and then undertake a process of persuading management and directors to restructure. Now, in June 2002, Dobrynin could look back on the large returns from the use of that strategy. Chandler noted that Wrigley’s market value of common equity was about $13.1 billion. Dobrynin and Chandler discussed the current capital-market conditions and decided to focus on the assumption that Wrigley could borrow $3 billion at a credit rating between BB and B, to yield 13%. Chandler agreed to return soon to discuss the results of her research. This case was prepared by Robert F. Bruner and Sean D. Carr, research assistant, from public data about the Wm. Wrigley Jr. Company. Other persons and events are fictional. Copyright © 2005 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. For the exclusive use of J. Hu, 2019. -2- UV1373 The William Wrigley Jr. Company Wrigley was the world’s largest manufacturer and distributor of chewing gum. The firm’s industry, branded consumer foods and candy, was intensely competitive and was dominated by a few large players. Exhibit 1 gives product profiles of Wrigley and its peers. Over the preceding two years, revenues had grown at an annual compound rate of 10% (earnings at 9%), reflecting the introduction of new products and foreign expansion (Exhibit 2). Historically, the firm had been conservatively financed. At the end of 2001, it had total assets of $1.76 billion and no debt (Exhibit 3). As Exhibit 4 shows, Wrigley’s stock price had significantly outperformed the S&P 500 Composite Index, and was running slightly ahead of its industry index. Estimating the Effect of a Leveraged Recapitalization Under the proposed leveraged recapitalization, Wrigley would borrow $3 billion and use it either to pay an equivalent dividend or to repurchase an equivalent value of shares. Chandler knew that this combination of actions could affect the firm’s share value, cost of capital, debt coverage, earnings per share, and voting control. Accordingly, she sought to evaluate the effect of the recapitalization on those areas. She gathered financial data on Wrigley and its peer companies (Exhibit 5). Impact on share value Chandler recalled that the effect of leverage on a firm could be modeled by using the adjusted present-value formula, which hypothesized that debt increased the value of a firm by means of shielding cash flows from taxes. Thus, the present value of debt tax shields could be added to the value of the unlevered firm to yield the value of the levered enterprise. The marginal tax rate Chandler proposed to use was 40%, reflecting the sum of federal, state, and local taxes. Impact on debt rating A key assumption in the analysis would be the debt rating for Wrigley, after assuming $3 billion in debt, and whether the firm could cover the resulting interest payments. Dobrynin had suggested that Chandler should assume Wrigley would borrow $3 billion at a rating between BB and B. Was a rating of BB/B likely? In that regard, Chandler gathered information on the average financial ratios associated with different debt-rating categories (Exhibit 6). Dobrynin thought that Wrigley’s pretax cost of debt would be around 13%. Chandler sought to check that assumption against the capital-market information given in Exhibit 7. Impact on cost of capital Chandler knew that the maximum value of the firm was achieved when the weighted average cost of capital (WACC) was minimized. Thus, she intended to estimate what the cost of equity and the WACC might be, if Wrigley pursued this capital-structure change. The projected This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. For the exclusive use of J. Hu, 2019. -3- UV1373 cost of debt would depend on her assessment of Wrigley’s debt rating after recapitalization and on current capital-market rates (summarized in Exhibit 7). The cost of equity (KE) could be estimated by using the capital asset pricing model. Exhibit 7 gives yields on U.S. Treasury instruments, which afforded possible estimates of the risk-free rate of return. The practice at Aurora Borealis was to use an equity-market risk premium of 7.0%. Wrigley’s beta would also need to be relevered to reflect the projected recapitalization. Chandler wondered whether her analysis covered everything. Where, for instance, should she take into account potential costs of bankruptcy and distress or the effects of leverage as a signal about future operations? More leverage would also create certain constraints and incentives for management. Where should those be reflected in her analysis? Impact on reported earnings per share Chandler intended to estimate the expected effect on earnings per share (EPS) that would occur at different levels of operating income (EBIT) with a change in leverage. The beginnings of an EBIT/EPS analysis are presented in Exhibit 8. Impact on voting control The William Wrigley Jr. Company had 232.441 million shares outstanding. A repurchase of shares would alter that amount. The Wrigley family controlled 21% of the common shares outstanding and 58% of Class B common stock, which had superior voting rights to the common stock.1 Assuming the Wrigley family did not sell any shares, how would the share-repurchase alternative affect the family’s voting-control position in the company? Conclusion Although Susan Chandler’s analysis followed a familiar path, each company that she had analyzed differed in important respects from previous firms. Blanka Dobrynin paid her to run numbers and, more importantly, to find the differences wherein hidden threats and opportunities lay. Running the numbers was easy for Chandler; drawing profitable insights from them was not. 1 Shares of Class B common stock had 10 votes each; ordinary common shares had one vote each. Class B shares were restricted in their sale or transfer and could be converted into ordinary common shares on a 1:1 basis. Thus, for purposes of computing per-share values, the total number of shares outstanding for Wrigley consisted of the sum of common shares (189.8 million) and Class B shares (42.641 million), a total of 232.441 million shares. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. Cadbury Schweppes plc made and distributed confectionary and beverage products worldwide. Sold 51% stake in Coca-Cola and Schweppes Beverages Ltd. in 1997; beverage brands in 160 international markets in 1999. In 1998, owned 40% of American Bottling. Licensed Cadbury to Hershey in U.S. Acquired Dr. Pepper/7Up in ’95; Hawaiian Punch in ’99; and Snapple in ’00. Segment sales/operating profits in ’01: beverages, 43%/61%; confectionary, 57%/39%. Sales by region: U.K., 21%; U.S., 42%; Australia, 10%; other (including Europe), 27%. Had 36,460 employees. Bond rating: BBB/Baa2. Hershey Foods Corp. was the largest U.S. producer of chocolate and nonchocolate confectionary products (major brands: Hershey’s, Reese’s, Cadbury, Kit Kat, Sweet Escapes, TasteTations, Jolly Rancher, Good & Plenty, and Milk Duds). Sold majority of pasta operations in 1/99. Acquired Cadbury U.S. in 9/88; Henry Heide in 12/95; and Leaf North America in 12/96. Advertising costs: 4.2% of ’01 sales. ’01 depreciation rate: 6.6%. Had 14,400 employees; 40,300 shareholders. Hershey Trust Co. owns 11.5% of common stock and 99.6% of Class B. Bond rating: A+/A1. Kraft Foods Inc. was the largest branded food and beverage company headquartered in the U.S. and second largest worldwide. The company marketed many of the world’s leading food brands, including Kraft cheese, Maxwell House coffee, Nabisco cookies and crackers, Philadelphia cream cheese, Oscar Mayer meats, and Post cereals. Its products were sold in more than 145 countries. North American sales accounted for 74% of ’01 sales; international, 26%. Acquired Nabisco in 12/00. Had about 14,000 employees. Philip Morris owns 84% of its common stock(3/02 proxy). Bond rating: BBB+/A3. Tootsie Roll Industries, Inc., produced candy. Products include Tootsie Roll, Tootsie Pop, Tootsie Bubble Pop, and Mason Dots. Acquired Brach’s Confections’ Andes Candies in 5/00; Warner-Lambert’s former chocolate/caramel brands (Junior Mints, Sugar Daddy, Charleston Chew, and Pom Poms) in 9/88; Cella Confections in 7/85. Five plants in U.S., one in Mexico. Int’l ops. (Mexico and Canada): 7% of ’01 sales. Had about 1,950 employees. M. J. & E. R. Gordon control 74% of voting power. Bond rating: N/A. The Wm. Wrigley Jr. Company was the world’s largest manufacturer and seller of chewing gums, specialty gums, and gum base. Principal brands: Doublemint, Spearmint, Juicy Fruit, Big Red, WinterFresh, Extra, Orbit, Freedent. Amurol Products subsidiary made novelty gums, including Bubble Tape, Big League Chew; markets Hubba Bubba bubble gum. Foreign sales: 58% of 2001 total, 58% of pretax profit. Had 10,800 employees; 38,701 common shareholders. William Wrigley Jr. owned 21% of common stock and 58% of Class B. Bond rating: N/A. Cadbury Schweppes plc Hershey Foods Corp. Kraft Foods Inc. Tootsie Roll Industries, Inc. The Wm. Wrigley Jr. Company Sources of information: Value Line Investment Survey; Bloomberg LP. Description UVA-F-1482 Company Exhibit 1 THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Description of Industry Peer Firms -4- For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. For the exclusive use of J. Hu, 2019. -5- UVA-F-1482 Exhibit 2 THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Income Statements for the Wm. Wrigley Jr. Company year ended December 31 2001 2000 (in thousands, except per-share amounts) Earnings Net sales Cost of sales Gross profit Selling, general and admininstrative expenses Operating income Investment income Other expense Earnings before income taxes Income taxes Net earnings $ 2,429,646 $ 997,054 1,432,592 919,236 513,356 18,553 (4,543) 527,366 164,380 $ 362,986 $ Per-share amounts Net earnings per share of common stock Dividends paid per share of common stock $ $ 1.61 0.745 $ $ 2,145,706 $ 904,266 1,241,440 778,197 463,243 19,185 (3,116) 479,312 150,370 328,942 $ 1.45 0.70 $ $ 1999 2,061,602 904,183 1,157,419 721,813 435,606 17,636 (8,812) 444,430 136,247 308,183 1.33 0.66 Source of data: Company regulatory filings. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. For the exclusive use of J. Hu, 2019. -6- UVA-F-1482 Exhibit 3 THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Consolidated Balance Sheets for the Wm. Wrigley Jr. Company (in thousands of dollars) ASSETS Current assets: Cash and equivalents Short-term investments, at amortized cost Accounts receivable Inventories Finished goods Raw materials and supplies 2001 $ Other current assets Deferred income taxes - current Total current assets Marketable equity securities, at fair value Deferred charges and other assets Deferred income taxes - noncurrent Property, plant, and equipment (at cost) Land Buildings and building equipment Machinery and equipment Less accumulated depreciation Net property, plant and equipment TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses Dividends payable Income and other taxes payable Deferred income taxes - current Total current liabilities Deferred income taxes - noncurrent Other non-current liabilities Common stock Class B convertible stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ $ $ 2000 307,785 $ 25,450 239,885 300,599 29,301 191,570 75,693 203,288 278,981 46,896 14,846 913,843 25,300 115,745 26,381 64,676 188,615 253,291 39,728 14,226 828,715 28,535 83,713 26,743 39,125 39,933 344,457 359,109 756,050 857,044 1,139,632 1,256,086 532,598 571,717 607,034 684,379 1,765,648 $ 1,574,740 73,129 91,225 $ 113,779 128,406 39,467 42,711 68,437 60,976 1,455 859 332,234 288,210 40,144 43,206 113,489 113,921 12,558 12,646 2,938 2,850 346 1,153 1,492,547 1,684,337 (256,478) (289,799) (119,014) (134,900) 1,132,897 1,276,287 1,765,648 $ 1,574,740 Source of data: Company regulatory filings. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. S&P Food Beverage & Tobacco Index Wrigley S&P 500 00 00 00 00 00 00 00 01 01 01 01 01 01 01 01 01 01 01 01 02 02 02 02 02 02 n- Jul- ug- ep- ct- ov- ec- an- eb- ar- pr- ay- un- Jul- ug- ep- ct- ov- ec- an- eb- ar- pr- ay- unJ J J J O N O N S F M S F M A M A M D D A A Source of data: Datastream, with case writer’s analysis. Ju $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 Stock-Price Performance of the Wm. Wrigley Jr. Company (value of $1,000 investment: June 1, 2000, to June 7, 2002) THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Exhibit 4 -7- UVA-F-1482 For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. 0.60 0.60 nmf 0.65 0.75 1.00 Cadbury Schweppes plc Hershey Foods Corp. Kraft Foods Tootise Roll Industries Inc. Wm. Wrigley Jr. Co. S&P 500 Composite Note: nmf = not a meaningful figure. Source of data: Value Line Investment Survey. Beta $ 26.66 $ 65.45 $ 38.82 $ 31.17 $ 56.37 $ 1,148.08 Company Name Cadbury Schweppes plc Hershey Foods Corp. Kraft Foods Tootise Roll Industries Inc. Wm. Wrigley Jr. Co. S&P 500 Composite Company Name Recent Price 1.39 2.74 1.17 1.30 1.61 18.78 EPS 502.50 136.63 1,735.00 51.66 232.44 Common Shares Outstandi ng (millions) $ $ $ $ $ 15.20 20.40 18.70 24.00 29.30 40.55 Price/ Earnings 13,397 8,942 67,353 1,610 13,103 Market Value of Equity (millions) $ $ $ $ $ 0.67 1.16 0.26 0.28 0.75 Cash Dividend 44.0% 41.0% 12.0% 22.0% 46.0% Dividend Payout 2,264 869 8,548 8 - Total LT Debt (millions) $ 5,264 $ $ 2,785 $ $ 39,920 $ $ 509 $ $ 1,276 $ Book Value of Equity (millions) 2.50% 2.00% 1.50% 0.90% 1.50% Dividend Yield 30.07% 23.77% 17.64% 1.45% 0.00% 18.23% LT Debt/ (LT Debt + Book Value of Equity) Financial Characteristics of Major Confectionary Firms 4.6x 11.1x 3.4x nmf nmf Interest Coverage Before Tax 14.46% 8.85% 11.26% 0.46% 0.00% 8.76% LT Debt/ (LT Debt + Mkt Value of Equity) THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Exhibit 5 -8- 6.50% 6.50% nmf 12.50% 9.00% -49.57% Compound Growth of EPS Past 5 Yrs 43.01% 31.18% 21.41% 1.47% 0.00% 24.27% LT Debt/Book Value of Equity 10.3 11.4 10.1 14.6 22.6 Firm Value/ EBITDA 16.90% 9.71% 12.69% 0.47% 0.00% 9.94% LT Debt / Mkt Value of Equity UVA-F-1482 For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. AAA 23.4 214.2 156.6 35.0 23.4 (1.1) 5.0 BBB 3.9 30.6 12.8 13.1 15.5 40.3 47.0 UVA-F-1482 Non-Investment Grade BB B 2.2 1.0 19.7 10.4 7.3 1.5 11.5 8.0 15.4 14.7 53.6 72.6 57.7 75.1 Source of data: Standard & Poor’s Corporate Ratings Criteria (New York: Standard & Poor’s, 2005), 42. Total debt/capital. Long-term debt + current maturities, commercial paper, and other short-term borrowings/Long-term debt + current maturities, commercial paper, and other short-term borrowings + shareholders' equity (including preferred stock) + minority interest. Total debt/EBITDA. Long-term debt + current maturities, commercial paper, and other short-term borrowings/Adjusted earnings from continuing operations before interest, taxes, and depreciation and amortization. Return on capital. EBIT/Average of beginning of year and end of year capital, including short-term debt, current maturities, long-term debt, noncurrent deferred taxes, minority interest, and equity (common and preferred stock). Free operating cash flow/total debt. Free operating cash flow is defined as FFO - capital expenditures - (+) increase (decrease) in working capital (excluding changes in cash, marketable securities, and short-term debt)/Long-term debt + current maturities, commercial paper, and other short-term borrowings. FFO/total debt divides funds from operations (FFO) by total debt. FFO is defined as net income from continuing operations, depreciation and amortization, deferred income taxes, and other noncash items/Long-term debt + current maturities + commercial paper, and other short-term borrowings. EBIT interest coverage divides earnings before interest and taxes (EBIT) by gross interest expense (before subtracting capitalized interest and interest income). Definitions: Source of data: Standard & Poor’s CreditStats, September 8, 2003. EBIT interest coverage (x) Funds from operations/total debt (%) Free operating cash flow/total debt (%) Return on capital (%) Operating income/sales (%) Long-term debt/capital (%) Total debt/capital, incl. short-term debt (%) Investment Grade AA A 13.3 6.3 65.7 42.2 33.6 22.3 26.6 18.1 24.0 18.1 21.1 33.8 35.9 42.6 Key Industrial Financial Ratios by Credit Rating THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Exhibit 6 -9- For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. Yield 9.307% 9.786% 10.083% 10.894% 12.753% 14.663% Corporate debt obligations (10 year) AAA AA A BBB BB B Source of data: Bloomberg LP; Federal Reserve Bank Reports. Yield 1.670% 1.710% 2.310% 3.160% 3.660% 4.090% 4.520% 4.860% 5.650% U.S. Treasury obligations 3 mos. 6 mos. 1 yr. 2 yr. 3 yr. 5 yr. 7 yr. 10 yr. 20 yr. 0% 3 mos. 6 mos. 1 yr. 1% 2% 3% 4% 5% 6% 2 yr. 3 yr. June 7, 2002 U.S. Treasury yield curve 5 yr. 7 yr. Other instruments U.S. Federal Reserve Bank discount rate LIBOR (1 month) Certificates of deposit (6 month) Prime interest rates Capital-Market Conditions as of June 7, 2002 THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Exhibit 7 -10- 10 yr. 20 yr. 1.730% 1.840% 1.980% 4.750% UVA-F-1482 For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019. Before recapitalization Before recapitalization Worst case Most likely Best case Operating income (EBIT) Interest expense Taxable income Taxes Net income Shares outstanding Earnings per share Assumptions Interest rate on debt Pre-recap debt Tax rate After recapitalization Operating income (EBIT) Interest expense Taxable income Taxes Net income Shares outstanding Earnings per share Assumptions Interest rate on debt Pre-recap debt Tax rate EPS versus EBIT Analysis UVA-F-1482 Worst case Most likely Best case After recapitalization THE WM. WRIGLEY JR. COMPANY: CAPITAL STRUCTURE, VALUATION, AND COST OF CAPITAL Exhibit 8 -11- For the exclusive use of J. Hu, 2019. This document is authorized for use only by Jiren Hu in Cases in Corporate Finance S19 taught by JIM HILLIARD, Northern Arizona University from Jan 2019 to Jul 2019.
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This spreadsheet supports STUDENT analysis of
the case, "The Wm. Wrigley Jr. Company" (UVA-F-

Copyright © 2005 by the University of Virginia Darden School Foundation.

The Wim. Wrigley Jr. Company
Statement of Earnings
year ended December 31
(in thousands, except per-share amounts)
2001
2000
1999
Earnings
Net sales
$ 2,429,646 $ 2,145,706 $ 2,061,602
Cost of sales
997,054
904,266
904,183
Gross profit
1,432,592
1,241,440
1,157,419
Selling, general and admininstrative expenses
919,236
778,197
721,813
Operating income
513,356
463,243
435,606
Investment income
18,553
19,185
17,636
Other expense
(4,543)
(3,116)
(8,812)
Earnings before income taxes
527,366
479,312
444,430
Income taxes
164,380
150,370
136,247
Net earnings
$ 362,986 $
328,942 $
308,183
Per-share amounts
Net earnings per share of common stock
Dividends paid per share of common stock
Source of data: Company regulatory filings.

$
$

1.61
0.745

$
$

1.45
0.70

$
$

1.33
0.66

The Wim. Wrigley Jr. Company
Consolidated Balance Sheet
(in thousands of dollars)
ASSETS
Current assets:
Cash and equivalents
Short-term investments, at amortized cost
Accounts receivable
Inventories
Finished goods
Raw materials and supplies

2001

$

75,693
203,288
278,981
46,896
14,846
913,843
25,300
115,745
26,381

Other current assets
Deferred income taxes - current
Total current assets
Marketable equity securities, at fair value
Deferred charges and other assets
Deferred income taxes - noncurrent
Property, plant, and equipment (at cost)
Land
Buildings and building equipment
Machinery and equipment
Less accumulated depreciation
Net property, plant and equipment
TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
Accrued expenses
Dividends payable
Income and other taxes payable
Deferred income taxes - current
Total current liabilities
Deferred income taxes - noncurrent
Other non-current liabilities
Common stock
Class B convertible stock
Additional paid-in capital
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total stockholders' equity

307,785
25,450
239,885

$

$

39,933
359,109
857,044
1,256,086
571,717
684,379
1,765,648

91,225
128,406
42,711
68,437
1,455
332,234
43,206
113,921
12,646
2,850
1,153
1,684,337
(289,799)
(134,900)
1,276,287

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
Source of data: Company regulatory filings.

$

1,765,648

2000

$

300,599
29,301
191,570
64,676
188,615
253,291
39,728
14,226
828,715
28,535
83,713
26,743

39,125
344,457
756,050
1,139,632
532,598
607,034
$ 1,574,740

$

73,129
113,779
39,467
60,976
859
288,210
40,144
113,489
12,558
2,938
346
1,492,547
(256,478)
(119,014)
1,132,897

$ 1,574,740

$1,500
$1,400

Wrigley

$1,300
$1,200
$1,100
$1,000

$900
$800
$700
$600

S&P Food
Beverage &
Tobacco Index
S&P 500

Financial Characteristics of Major Confectionary Firms

Company Name

Cadbury Schweppes plc
Hershey Foods Corp.
Kraft Foods
Tootise Roll Industries Inc.
Wm. Wrigley Jr. Co.
S&P 500 Composite

Company Name

Cadbury Schweppes plc
Hershey Foods Corp.
Kraft Foods
Tootise Roll Industries Inc.
Wm. Wrigley Jr. Co.
S&P 500 Composite

Recent
Price

$
26.66
$
65.45
$
38.82
$
31.17
$
56.37
$ 1,148.08

Beta

0.60
0.60
nmf
0.65
0.75
1.00

Source of data: Value Line Investment Survey.

Common
Shares
Outstandi
ng
(millions)

502.50
136.63
1,735.00
51.66
232.44

EPS

1.39
2.74
1.17
1.30
1.61
18.78

Market
Value of
Equity
(millions)

$
$
$
$
$

13,397
8,942
67,353
1,610
13,103

Price/
Earnings

15.20
20.40
18.70
24.00
29.30
40.55

Book
Value of
Equity
(millions)

Total LT
Debt
(millions)

$ 5,264
$ 2,785
$ 39,920
$
509
$ 1,276

$
$
$
$
$

Cash
Dividend

$
$
$
$
$

0.67
1.16
0.26
0.28
0.75

2,264
869
8,548
8
-

Dividend
Payout

44.0%
41.0%
12.0%
22.0%
46.0%

LT Debt/
(LT Debt
+ Book
Value of
Equity)

30.07%
23.77%
17.64%
1.45%
0.00%
18.23%

Dividend
Yield

2.50%
2.00%
1.50%
0.90%
1.50%

LT Debt/
(LT Debt +
Mkt Value
of Equity)

14.46%
8.85%
11.26%
0.46%
0.00%
8.76%
Interest
Coverage
Before Tax

4.6x
11.1x
3.4x
nmf
nmf

LT
Debt/Book
Value of
Equity

43.01%
31.18%
21.41%
1.47%
0.00%
24.27%
Compound
Growth of
EPS Past 5
Yrs

6.50%
6.50%
nmf
12.50%
9.00%
-49.57%

LT Debt /
Mkt Value
of Equity

16.90%
9.71%
12.69%
0.47%
0.00%
9.94%

Firm Value/
EBITDA

10.3
11.4
10.1
14.6
22.6

Key Industrial Financial Ratios (Three-year medians 2000-2002)

EBIT interest coverage (x)
Funds from operations/total debt (%)
Free operating cash flow/total debt (%)
Return on capital (%)
Operating income/sales (%)
Long-term debt/capital (%)
Total debt/capital, incl. short-term debt (%)

AAA
23.4
214.2
156.6
35.0
23.4
(1.1)
5.0

Investment Grade
AA
A
13.3
6.3
65.7
42.2
33.6
22.3
26.6
18.1
24.0
18.1
21.1
33.8
35.9
42.6

BBB
3.9
30.6
12.8
13.1
15.5
40.3
47.0

Source of data: Standard & Poor's CreditStats, September 8, 2003.
Definitions:
EBIT interest coverage divides earnings before interest and taxes (EBIT) by gross interest expense (before subtracting capitalized interest and interest
income).
FFO/total debt divides funds from operations (FFO) by total debt. FFO is defined as net income from continuing operations, depreciation and
amortization, deferred income taxes, and other noncash items/Long-term debt + current maturities + commercial paper, and other short-term borrowings.

Free operating cash flow/total debt. Free operating cash flow is defined as FFO - capital expenditures - (+) increase (decrease) in working capital (excluding changes i
cash, marketable securities, and short-term debt)/Long-term debt + current maturities, commercial paper, and other short-term borrowings.

Total debt/EBITDA. Long-term debt + current maturities, commercial paper, and other short-term borrowings/Adjusted earnings from continuing operations before int
taxes, and depreciation and amortization.
Return on capital. EBIT/Average of beginning of year and end of year capital, including short-term debt, current maturities, long-term debt, noncurrent deferred taxes,
minority interest, and equity (common and preferred stock).

Total debt/capital. Long-term debt + current maturities, commercial paper, and other short-term borrowings/Long-term debt + current maturities, commercial paper, an
other short-term borrowings + shareholders' equity (including preferred stock) + minority interest.
Source: Standard & Poor’s Corporate Ratings Criteria 2005 , New York: Standard & Poor’s Corporation, page 42.

Non-Investment Grade
BB
B
2.2
1.0
19.7
10.4
7.3
1.5
11.5
8.0
15.4
14.7
53.6
72.6
57.7
75.1

pitalized interest and interest

ons, depreciation and
d other short-term borrowings.

crease) in working capital (excluding changes in
erm borrowings.

earnings from continuing operations before interest,

ies, long-term debt, noncurrent deferred taxes,

debt + current maturities, commercial paper, and

Capital Market Conditions, June 7, 2002
U.S. Treasury obligations
3 mos.
6 mos.
1 yr.
2 yr.
3 yr.
5 yr.
7 yr.
10 yr.
20 yr.
Corporate debt obligations (10 year)
AAA
AA
A
BBB
BB
B

Yield
1.670%
1.710%
2.310%
3.160%
3.660%
4.090%
4.520%
4.860%
5.650%
Yield
9.307%
9.786%
10.083%
10.894%
12.753%
14.663%

Sources of data: Bloomberg LP, Federal Reserve Bank Reports

Other instruments
U.S. Federal Reserve Bank discount rate
LIBOR (1 month)
Certificates of deposit (6 month)
Prime interest rates

1.730%
1.840%
1.980%
4.750%

U.S. Treasury yield curve
June 7, 2002
6%
5%
4%
3%
2%
1%
0%
3 mos. 6 mos. 1 yr.

2 yr.

3 yr.

5 yr.

7 yr.

10 yr. 20 yr.

EPS v. EBIT Analysis
Assumptions
Interest rate on debt
Pre-recap debt
Tax rate

Before recapitalization
12.75%
7.65%
40.00%

Before recapitalization Worst case Most likely
Operating income (EBIT)
410684.8
555891.6
Interest expense
-3634.4
-3739.2
Taxable income
290388.8
394730.4
Taxes
131504
180444
Net income
290388.8
394730.4
Shares outstanding
41.324 1932.10362
Earnings per share
1.288
1.74

Best case
653409
-13218
462274.5
204370.5
462274.5
762.75
1.995

Assumptions
Interest rate on debt
Pre-recap debt
Tax rate

After recapitalization
0.0765198
13%
40%

After recapitalization
Operating income (EBIT)
Interest expense
Taxable income
Taxes
Net income
Shares outstanding
Earnings per share

Worst case Most likely
385017
513356
175500
234000
395524.5
527366
123285
164380
272239.5
362986
38741250
51655000
1.2075
1.61

Best case
641695
292500
659207.5
205475
453732.5
64568750
2.0125

Source:
Datastream

Name

S&P 500
COMPOSITE
- PRICE
INDEX

WRIGLEY
WILLIAM JR.

Code
Wrigley
CURRENCY U$
3/1/1999 $
3/2/1999 $
3/3/1999 $
3/4/1999 $
3/5/1999 $
3/8/1999 $
3/9/1999 $
3/10/1999 $
3/11/1999 $
3/12/1999 $
3/15/1999 $
3/16/1999 $
3/17/1999 $
3/18/1999 $
3/19/1999 $
3/22/1999 $
3/23/1999 $
3/24/1999 $
3/25/1999 $
3/26/1999 $
3/29/1999 $
3/30/1999 $
3/31/1999 $
4/1/1999 $
4/2/1999 $
4/5/1999 $
4/6/1999 $
4/7/1999 $
4/8/1999 $
4/9/1999 $
4/12/1999 $
4/13/1999 $
4/14/1999 $

WWY
Indexed
46.62
45.47
45.81
46.41
46.50
46.84
45.81
44.72
45.78
46.94
47.37
47.25
46.59
46.19
45.28
45.50
44.50
45.09
44.97
44.38
45.22
45.03
45.22
45.19
45.19
46.22
45.94
45.50
46.16
46.56
48.25
48.22
47.22

S&P 500
S&P
Comp
Indexed
U$
$ 1,236.16
$ 1,225.50
$ 1,227.70
$ 1,246.64
$ 1,275.47
$ 1,282.73
$ 1,279.84
$ 1,286.84
$ 1,297.68
$ 1,294.59
$ 1,307.26
$ 1,306.38
$ 1,297.82
$ 1,316.55
$ 1,299.29
$ 1,297.01
$ 1,262.14
$ 1,268.59
$ 1,289.99
$ 1,282.80
$ 1,310.17
$ 1,300.75
$ 1,286.37
$ 1,293.72
$ 1,293.72
$ 1,321.12
$ 1,317.89
$ 1,326.89
$ 1,343.98
$ 1,348.35
$ 1,358.64
$ 1,349.82
$ 1,328.44

S&P500
FOOD BEV &
TOBACCO PRICE
S&P Food
Beverage &
Tobacco
U$
-0.029

SS&P
Food &
Bev
Indexed

4/15/1999
4/16/1999
4/19/1999
4/20/1999
4/21/1999
4/22/1999
4/23/1999
4/26/1999
4/27/1999
4/28/1999
4/29/1999
4/30/1999
5/3/1999
5/4/1999
5/5/1999
5/6/1999
5/7/1999
5/10/1999
5/11/1999
5/12/1999
5/13/1999
5/14/1999
5/17/1999
5/18/1999
5/19/1999
5/20/1999
5/21/1999
5/24/1999
5/25/1999
5/26/1999
5/27/1999
5/28/1999
5/31/1999
6/1/1999
6/2/1999
6/3/1999
6/4/1999
6/7/1999
6/8/1999
6/9/1999
6/10/1999
6/11/1999
6/14/1999
6/15/1999

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

46.72
46.00
45.28
45.22
46.12
46.87
46.81
47.00
47.16
45.50
44.19
44.34
45.16
43.94
44.19
44.44
45.00
44.66
44.09
44.16
45.13
45.19
45.00
44.72
44.66
45.25
44.84
44.34
43.78
43.69
42.84
43.53
43.53
43.19
42.94
43.19
43.97
44.06
42.41
42.69
43.16
42.97
43.00
42.31

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,322.86
1,319.00
1,289.48
1,306.17
1,336.12
1,358.82
1,356.85
1,360.04
1,362.80
1,350.91
1,342.83
1,335.18
1,354.63
1,332.00
1,347.31
1,332.05
1,345.00
1,340.30
1,355.61
1,364.00
1,367.56
1,337.80
1,339.49
1,333.32
1,344.23
1,338.83
1,330.29
1,306.65
1,284.40
1,304.76
1,281.41
1,301.84
1,301.84
1,294.26
1,294.81
1,299.54
1,327.75
1,334.52
1,317.33
1,318.64
1,302.82
1,293.64
1,294.00
1,301.16

6/16/1999
6/17/1999
6/18/1999
6/21/1999
6/22/1999
6/23/1999
6/24/1999
6/25/1999
6/28/1999
6/29/1999
6/30/1999
7/1/1999
7/2/1999
7/5/1999
7/6/1999
7/7/1999
7/8/1999
7/9/1999
7/12/1999
7/13/1999
7/14/1999
7/15/1999
7/16/1999
7/19/1999
7/20/1999
7/21/1999
7/22/1999
7/23/1999
7/26/1999
7/27/1999
7/28/1999
7/29/1999
7/30/1999
8/2/1999
8/3/1999
8/4/1999
8/5/1999
8/6/1999
8/9/1999
8/10/1999
8/11/1999
8/12/1999
8/13/1999
8/16/1999

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

42.06
42.53
42.50
41.50
41.41
41.53
41.44
41.84
42.56
43.13
44.59
44.44
43.94
43.94
43.34
43.81
43.63
44.22
43.63
42.84
42.66
43.09
43.00
42.91
42.47
42.47
42.44
41.59
41.84
41.50
40.84
40.47
39.84
40.88
39.84
38.66
38.44
38.19
38.31
37.97
38.00
37.47
37.19
36.84

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,330.41
1,339.90
1,342.84
1,349.00
1,335.88
1,333.06
1,315.78
1,315.31
1,331.35
1,351.45
1,372.71
1,380.96
1,391.22
1,391.22
1,388.12
1,395.86
1,394.42
1,403.28
1,399.10
1,393.56
1,398.17
1,409.62
1,418.78
1,407.65
1,377.10
1,379.29
1,360.97
1,356.94
1,347.76
1,362.84
1,365.40
1,341.03
1,328.72
1,328.05
1,322.18
1,305.33
1,313.71
1,300.29
1,297.80
1,281.43
1,301.93
1,298.16
1,327.68
1,330.77

8/17/1999
8/18/1999
8/19/1999
8/20/1999
8/23/1999
8/24/1999
8/25/1999
8/26/1999
8/27/1999
8/30/1999
8/31/1999
9/1/1999
9/2/1999
9/3/1999
9/6/1999
9/7/1999
9/8/1999
9/9/1999
9/10/1999
9/13/1999
9/14/1999
9/15/1999
9/16/1999
9/17/1999
9/20/1999
9/21/1999
9/22/1999
9/23/1999
9/24/1999
9/27/1999
9/28/1999
9/29/1999
9/30/1999
10/1/1999
10/4/1999
10/5/1999
10/6/1999
10/7/1999
10/8/1999
10/11/1999
10/12/1999
10/13/1999
10/14/1999
10/15/1999

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

37.19
36.87
37.31
37.00
37.31
38.19
39.06
39.09
38.53
38.19
39.16
39.06
38.41
38.56
38.56
38.13
38.09
38.38
37.97
38.56
37.22
36.81
36.41
35.84
35.75
35.25
34.88
33.66
34.50
35.00
34.97
34.47
34.41
34.03
34.00
33.97
34.88
34.88
36.00
35.31
35.38
34.78
35.38
34.66

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,344.16
1,332.84
1,323.59
1,336.61
1,360.22
1,363.50
1,381.79
1,362.01
1,348.27
1,324.02
1,320.41
1,331.06
1,319.11
1,357.24
1,357.24
1,350.45
1,344.15
1,347.66
1,351.66
1,344.13
1,336.29
1,317.97
1,318.48
1,335.42
1,335.53
1,307.58
1,310.52
1,280.41
1,277.36
1,283.31
1,282.20
1,268.38
1,282.70
1,282.81
1,304.59
1,301.34
1,325.40
1,317.64
1,336.02
1,335.20
1,313.03
1,285.55
1,283.42
1,247.41

10/18/1999
10/19/1999
10/20/1999
10/21/1999
10/22/1999
10/25/1999
10/26/1999
10/27/1999
10/28/1999
10/29/1999
11/1/1999
11/2/1999
11/3/1999
11/4/1999
11/5/1999
11/8/1999
11/9/1999
11/10/1999
11/11/1999
11/12/1999
11/15/1999
11/16/1999
11/17/1999
11/18/1999
11/19/1999
11/22/1999
11/23/1999
11/24/1999
11/25/1999
11/26/1999
11/29/1999
11/30/1999
12/1/1999
12/2/1999
12/3/1999
12/6/1999
12/7/1999
12/8/1999
12/9/1999
12/10/1999
12/13/1999
12/14/1999
12/15/1999
12/16/1999

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

35.13
35.16
35.25
35.87
36.16
36.22
36.37
38.91
40.28
39.97
39.34
40.28
41.50
41.22
41.06
41.56
40.59
40.50
39.50
40.38
40.28
40.44
42.09
41.37
40.81
40.88
41.59
41.56
41.56
41.28
41.47
41.59
41.47
40.63
40.81
40.78
41.50
40.75
40.75
40.50
40.66
40.94
40.94
39.88

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,254.13
1,261.31
1,289.42
1,283.61
1,301.66
1,293.63
1,281.91
1,296.70
1,342.44
1,362.92
1,354.13
1,347.74
1,354.92
1,362.64
1,370.23
1,377.01
1,365.28
1,373.46
1,381.45
1,396.06
1,394.39
1,420.06
1,410.70
1,424.94
1,422.00
1,420.94
1,404.64
1,417.08
1,417.08
1,416.62
1,407.83
1,388.91
1,397.72
1,409.03
1,433.30
1,423.33
1,409.17
1,403.88
1,408.11
1,417.03
1,415.22
1,403.17
1,413.32
1,418.78

12/17/1999
12/20/1999
12/21/1999
12/22/1999
12/23/1999
12/24/1999
12/27/1999
12/28/1999
12/29/1999
12/30/1999
12/31/1999
1/3/2000
1/4/2000
1/5/2000
1/6/2000
1/7/2000
1/10/2000
1/11/2000
1/12/2000
1/13/2000
1/14/2000
1/17/2000
1/18/2000
1/19/2000
1/20/2000
1/21/2000
1/24/2000
1/25/2000
1/26/2000
1/27/2000
1/28/2000
1/31/2000
2/1/2000
2/2/2000
2/3/2000
2/4/2000
2/7/2000
2/8/2000
2/9/2000
2/10/2000
2/11/2000
2/14/2000
2/15/2000
2/16/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

38.63
38.97
39.09
39.28
39.75
39.75
40.56
40.72
40.41
40.50
41.47
40.34
39.50
39.00
39.38
40.00
38.97
39.06
39.59
40.81
39.84
39.84
40.50
39.75
38.81
38.53
37.19
37.59
39.50
39.03
38.47
39.00
38.16
37.97
38.38
38.19
38.41
38.69
38.03
37.47
37.16
37.31
38.19
37.41

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,421.03
1,418.09
1,433.43
1,436.13
1,458.34
1,458.34
1,457.09
1,457.66
1,463.45
1,464.47
1,469.25
1,455.22
1,399.42
1,402.11
1,403.45
1,441.47
1,457.59
1,438.56
1,432.25
1,449.67
1,465.16
1,465.16
1,455.14
1,455.91
1,445.56
1,441.36
1,401.53
1,410.03
1,404.09
1,398.56
1,360.16
1,394.45
1,409.28
1,409.12
1,424.97
1,424.37
1,424.18
1,441.75
1,411.70
1,416.83
1,387.13
1,389.94
1,402.05
1,387.67

2/17/2000
2/18/2000
2/21/2000
2/22/2000
2/23/2000
2/24/2000
2/25/2000
2/28/2000
2/29/2000
3/1/2000
3/2/2000
3/3/2000
3/6/2000
3/7/2000
3/8/2000
3/9/2000
3/10/2000
3/13/2000
3/14/2000
3/15/2000
3/16/2000
3/17/2000
3/20/2000
3/21/2000
3/22/2000
3/23/2000
3/24/2000
3/27/2000
3/28/2000
3/29/2000
3/30/2000
3/31/2000
4/3/2000
4/4/2000
4/5/2000
4/6/2000
4/7/2000
4/10/2000
4/11/2000
4/12/2000
4/13/2000
4/14/2000
4/17/2000
4/18/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

37.44
36.97
36.97
37.31
36.28
33.97
32.78
34.28
33.81
32.84
31.91
32.53
32.03
31.28
31.25
31.47
30.84
31.03
30.31
33.12
36.72
36.03
36.50
36.91
36.16
36.72
35.19
34.63
34.91
35.84
38.34
38.41
38.16
38.91
38.25
38.28
38.31
38.78
39.06
39.41
39.28
38.22
38.81
38.66

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,388.27
1,346.09
1,346.09
1,352.17
1,360.69
1,353.42
1,333.36
1,348.05
1,366.42
1,379.19
1,381.77
1,409.17
1,391.28
1,355.63
1,366.70
1,401.69
1,395.07
1,383.62
1,359.15
1,392.15
1,458.47
1,464.47
1,456.63
1,493.88
1,500.64
1,527.34
1,527.45
1,523.86
1,507.73
1,508.52
1,487.92
1,498.58
1,505.97
1,494.73
1,487.38
1,501.34
1,516.34
1,504.45
1,500.59
1,467.17
1,440.52
1,356.56
1,401.44
1,441.61

4/19/2000
4/20/2000
4/21/2000
4/24/2000
4/25/2000
4/26/2000
4/27/2000
4/28/2000
5/1/2000
5/2/2000
5/3/2000
5/4/2000
5/5/2000
5/8/2000
5/9/2000
5/10/2000
5/11/2000
5/12/2000
5/15/2000
5/16/2000
5/17/2000
5/18/2000
5/19/2000
5/22/2000
5/23/2000
5/24/2000
5/25/2000
5/26/2000
5/29/2000
5/30/2000
5/31/2000
6/1/2000
6/2/2000
6/5/2000
6/6/2000
6/7/2000
6/8/2000
6/9/2000
6/12/2000
6/13/2000
6/14/2000
6/15/2000
6/16/2000
6/19/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

38.00
38.00
38.00
38.88
38.84
37.91
36.91
36.19
71.94
72.25
73.00
73.81
73.13
73.50
73.88
74.38
74.81
73.94
74.63
37.37
36.22
36.25
36.16
37.00
37.47
39.09
38.94
40.06
40.06
40.31
40.03
40.16
39.94
39.81
40.41
40.69
40.63
40.47
41.12
41.84
41.56
40.50
39.75
39.53

#######
$ 994.52
$ 991.28
#######
#######
#######
#######
#######
#######
#######
#######
$ 989.79
$ 984.31

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,427.47
1,434.53
1,434.53
1,429.86
1,477.44
1,460.98
1,464.92
1,452.42
1,468.25
1,446.28
1,415.09
1,409.56
1,432.63
1,424.17
1,412.14
1,383.05
1,407.81
1,420.95
1,452.36
1,466.03
1,447.80
1,437.20
1,406.95
1,400.72
1,373.86
1,399.05
1,381.52
1,378.02
1,378.02
1,422.45
1,420.59
1,448.81
1,477.27
1,467.63
1,457.84
1,471.36
1,461.67
1,456.95
1,446.00
1,469.44
1,470.54
1,478.73
1,464.46
1,486.00

#######
#######
#######
#######
#######
#######
#######
$ 998.06
#######
#######
#######
#######
#######

178.77
175.16
174.46
176.39
180.56
181.22
179.34
180.35
182.75
182.9
185.9
182.32
181.55

$1,000.00
$ 979.81
$ 975.89
$ 986.69
$1,010.01
$1,013.70
$1,003.19
$1,008.84
$1,022.26
$1,023.10
$1,039.88
$1,019.86
$1,015.55

6/20/2000
6/21/2000
6/22/2000
6/23/2000
6/26/2000
6/27/2000
6/28/2000
6/29/2000
6/30/2000
7/3/2000
7/4/2000
7/5/2000
7/6/2000
7/7/2000
7/10/2000
7/11/2000
7/12/2000
7/13/2000
7/14/2000
7/17/2000
7/18/2000
7/19/2000
7/20/2000
7/21/2000
7/24/2000
7/25/2000
7/26/2000
7/27/2000
7/28/2000
7/31/2000
8/1/2000
8/2/2000
8/3/2000
8/4/2000
8/7/2000
8/8/2000
8/9/2000
8/10/2000
8/11/2000
8/14/2000
8/15/2000
8/16/2000
8/17/2000
8/18/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

38.56
38.19
38.78
39.25
40.69
40.25
39.56
38.91
40.09
39.97
39.97
40.31
40.56
40.53
40.00
39.56
39.19
39.03
39.47
38.66
39.03
39.34
39.06
38.69
37.91
38.06
38.09
38.31
38.16
38.00
38.84
39.34
38.75
39.13
38.88
38.47
38.09
38.59
38.66
38.91
39.03
38.53
38.38
39.03

$ 960.16
$ 950.95
$ 965.64
$ 977.34
#######
#######
$ 985.06
$ 968.87
$ 998.26
$ 995.27
$ 995.27
#######
#######
#######
$ 996.02
$ 985.06
$ 975.85
$ 971.86
$ 982.82
$ 962.65
$ 971.86
$ 979.58
$ 972.61
$ 963.40
$ 943.97
$ 947.71
$ 948.46
$ 953.93
$ 950.20
$ 946.22
$ 967.13
$ 979.58
$ 964.89
$ 974.35
$ 968.13
$ 957.92
$ 948.46
$ 960.91
$ 962.65
$ 968.87
$ 971.86
$ 959.41
$ 955.68
$ 971.86

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,475.95
1,479.13
1,452.18
1,441.48
1,455.31
1,450.55
1,454.82
1,442.39
1,454.60
1,469.54
1,469.54
1,446.23
1,456.67
1,478.90
1,475.62
1,480.88
1,492.92
1,495.84
1,509.98
1,510.49
1,493.74
1,481.96
1,495.57
1,480.19
1,464.29
1,474.47
1,452.42
1,449.62
1,419.89
1,430.83
1,438.10
1,438.70
1,452.56
1,462.93
1,479.32
1,482.80
1,472.87
1,460.25
1,471.84
1,491.56
1,484.43
1,479.85
1,496.07
1,491.72

#######
#######
#######
$ 994.94
#######
#######
#######
$ 995.57
#######
#######
#######
$ 998.22
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
$ 980.04
$ 987.59
$ 992.61
$ 993.02
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######

177.3
177.31
178.51
179.98
186.91
185.95
185.71
184.28
182.99
185.13
185.13
186.86
187.23
185.41
182.96
180.73
179.23
181.12
181.32
179.46
181.47
186.05
186.08
184.96
182.35
184.13
182.4
184.56
187.27
185.26
188.55
189.98
189.49
189.7
189.43
189.44
187.27
190.21
194.6
196.61
195.2
193.38
192.37
191.35

$ 991.78
$ 991.83
$ 998.55
$1,006.77
$1,045.53
$1,040.16
$1,038.82
$1,030.82
$1,023.61
$1,035.58
$1,035.58
$1,045.25
$1,047.32
$1,037.14
$1,023.44
$1,010.96
$1,002.57
$1,013.15
$1,014.26
$1,003.86
$1,015.10
$1,040.72
$1,040.89
$1,034.63
$1,020.03
$1,029.98
$1,020.31
$1,032.39
$1,047.55
$1,036.30
$1,054.71
$1,062.71
$1,059.97
$1,061.14
$1,059.63
$1,059.69
$1,047.55
$1,063.99
$1,088.55
$1,099.79
$1,091.91
$1,081.73
$1,076.08
$1,070.37

8/21/2000
8/22/2000
8/23/2000
8/24/2000
8/25/2000
8/28/2000
8/29/2000
8/30/2000
8/31/2000
9/1/2000
9/4/2000
9/5/2000
9/6/2000
9/7/2000
9/8/2000
9/11/2000
9/12/2000
9/13/2000
9/14/2000
9/15/2000
9/18/2000
9/19/2000
9/20/2000
9/21/2000
9/22/2000
9/25/2000
9/26/2000
9/27/2000
9/28/2000
9/29/2000
10/2/2000
10/3/2000
10/4/2000
10/5/2000
10/6/2000
10/9/2000
10/10/2000
10/11/2000
10/12/2000
10/13/2000
10/16/2000
10/17/2000
10/18/2000
10/19/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

39.34
38.72
38.53
38.38
38.06
38.13
37.91
37.31
37.03
36.81
36.81
37.03
36.59
36.22
37.50
36.75
37.22
37.09
35.91
35.84
35.47
35.72
35.34
35.78
36.28
35.87
36.50
36.66
37.16
37.44
37.28
36.97
36.50
38.34
37.69
37.81
38.09
38.16
38.13
37.31
38.03
37.44
37.25
37.50

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

979.58
964.14
959.41
955.68
947.71
949.45
943.97
929.03
922.06
916.58
916.58
922.06
911.11
901.89
933.76
915.09
926.79
923.56
894.17
892.43
883.22
889.44
879.98
890.94
903.39
893.18
908.86
912.85
925.30
932.27
928.29
920.57
908.86
954.68
938.50
941.48
948.46
950.20
949.45
929.03
946.96
932.27
927.54
933.76

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,499.48
1,498.13
1,505.97
1,508.31
1,506.45
1,514.09
1,509.84
1,502.59
1,517.68
1,520.77
1,520.77
1,507.08
1,492.25
1,502.51
1,494.50
1,489.26
1,481.99
1,484.91
1,480.87
1,465.81
1,444.51
1,459.90
1,451.34
1,449.05
1,448.72
1,439.03
1,427.21
1,426.57
1,458.29
1,436.51
1,436.23
1,426.46
1,434.32
1,436.28
1,408.99
1,402.03
1,387.02
1,364.59
1,329.78
1,374.17
1,374.62
1,349.97
1,342.13
1,388.76

#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
$ 997.03
#######
#######
#######
$ 999.94
$ 993.25
$ 985.09
$ 984.65
#######
$ 991.51
$ 991.32
$ 984.57
$ 990.00
$ 991.35
$ 972.52
$ 967.71
$ 957.35
$ 941.87
$ 917.84
$ 948.48
$ 948.79
$ 931.78
$ 926.37
$ 958.55

192.07
189.7
190.01
189
185.81
186.93
184.86
180.5
178.78
179.24
179.24
181.28
179.05
179.98
181.39
179.89
181.74
180.25
177.16
176.01
178.09
178.61
173.24
175.03
181.69
181.8
183.19
185.5
187.22
186.66
189.11
188.58
189.04
192.77
192.09
192.42
194.34
194.14
193.53
190.37
193.63
194.19
196.17
194.8

$1,074.40
$1,061.14
$1,062.87
$1,057.22
$1,039.38
$1,045.65
$1,034.07
$1,009.68
$1,000.06
$1,002.63
$1,002.63
$1,014.04
$1,001.57
$1,006.77
$1,014.66
$1,006.27
$1,016.61
$1,008.28
$ 990.99
$ 984.56
$ 996.20
$ 999.10
$ 969.07
$ 979.08
$1,016.33
$1,016.95
$1,024.72
$1,037.65
$1,047.27
$1,044.13
$1,057.84
$1,054.87
$1,057.45
$1,078.31
$1,074.51
$1,076.36
$1,087.10
$1,085.98
$1,082.56
$1,064.89
$1,083.12
$1,086.26
$1,097.33
$1,089.67

10/20/2000
10/23/2000
10/24/2000
10/25/2000
10/26/2000
10/27/2000
10/30/2000
10/31/2000
11/1/2000
11/2/2000
11/3/2000
11/6/2000
11/7/2000
11/8/2000
11/9/2000
11/10/2000
11/13/2000
11/14/2000
11/15/2000
11/16/2000
11/17/2000
11/20/2000
11/21/2000
11/22/2000
11/23/2000
11/24/2000
11/27/2000
11/28/2000
11/29/2000
11/30/2000
12/1/2000
12/4/2000
12/5/2000
12/6/2000
12/7/2000
12/8/2000
12/11/2000
12/12/2000
12/13/2000
12/14/2000
12/15/2000
12/18/2000
12/19/2000
12/20/2000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

36.94
37.12
37.19
38.47
38.75
39.19
40.09
39.59
40.00
39.78
40.25
41.09
40.84
41.06
41.97
42.50
42.09
42.06
43.31
43.59
43.19
43.69
44.72
44.31
44.31
43.59
43.78
44.53
45.47
45.41
45.28
45.66
44.88
44.47
45.19
44.53
43.00
43.31
43.91
43.31
44.69
45.44
45.75
46.00

$ 919.82
$ 924.30
$ 926.05
$ 957.92
$ 964.89
$ 975.85
$ 998.26
$ 985.81
$ 996.02
$ 990.54
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######
#######

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,396.93
1,395.78
1,398.13
1,364.90
1,364.44
1,379.58
1,398.66
1,429.40
1,421.22
1,428.32
1,426.69
1,432.19
1,431.87
1,409.28
1,400.14
1,365.98
1,351.26
1,382.95
1,389.81
1,372.32
1,367.72
1,342.62
1,347.35
1,322.36
1,322.36
1,341.77
1,348.97
1,336.09
1,341.91
1,314.95
1,315.23
1,324.97
1,376.54
1,351.46
1,343.55
1,369.89
1,380.20
1,371.18
1,359.99
1,340.93
1,312.15
1,322.74
1,305.60
1,264.74

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

964.19
963.40
965.02
942.08
941.77
952.22
965.39
986.60
980.96
985.86
984.73
988.53
988.31
972.72
966.41
942.83
932.67
954.54
959.28
947.20
944.03
926.71
929.97
912.72
912.72
926.12
931.09
922.20
926.22
907.61
907.80
914.52
950.12
932.81
927.35
945.53
952.64
946.42
938.69
925.54
905.67
912.98
901.15
872.95

190.24
192.38
194.22
197.69
199.42
202.05
207.59
205.9
206.15
205
202.99
206.06
205....