Morgan Stanley Investment Banking Pitch Book

Morgan Stanley WACC Calculation Predicted Beta (1)(2) 1.6 1.5 1.4 1.3 1.2 1.1 1 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Sep-22 PROJECT ORANGE Orange WACC Analysis (1) Market Risk Premium Barra Predicted Beta (2) Risk Free Rate - 10-Year Spot as of 09/12/22 Sensitivity Adjustment Cost Equity Equity / Total Capitalization Pre-Tax Cost of Debt Tax Rate After-Tax Cost of Debt Total Debt / Total Capitalization WACC Notes 1. Market data as of 9/12/2022 2. Barra Beta per Capital IQ as of 9/12/2022 Low 6.0% 1.49 3.4% (1.0%) 11.3% 100.0% 25% 11.3% PRELIMINARY AND CONFIDENTIAL DRAFT WACC Calculation Base 6.0% 1.49 3.4% 0.0% 12. 100.0% 25% 12.3% High 6.0% 1.49 3.4% 1.0% 13.3% 100.0% 25% 13.3% REFERENCE MATERIALS 28

View entire presentation