J.P.Morgan Investment Banking Pitch Book

APPENDIX WACC analysis WACC calculation Risk free rate Unlevered Beta Levered Beta Equity risk premium Cost of equity (Re) Pre-tax cost of debt (YTW) (Rd) Effective tax rate Post-tax cost of debt Target debt/total capital Target debt/equity WACC WACC (rounded) Leverage (% of TMC) Debt Equity Debt/equity JPMorgan 5.06% 1.30 1.75 4.08% 12.20% 6.55% 0.0% 6.55% 35.0% 53.8% 10.22% 10.20% 35.0% 35.0 65.0 53.8% Estimated peer Mean Median Company MGM Mirage Harrah's Entertainment Wynn Resorts Las Vegas Sands Gaylord Entertainment Orient Express Hotels Starwood Hotels & Resorts Hilton Hotels Beta 1.50 beta analysis 1.75 Predicted beta 1.50 1.25 1.75 1.60 1.50 1.50 1.25 1.25 2.00 WACC sensitivity by beta and cost of debt 6.05% 9.38% 10.05% 1.45 1.50 10.71% Total debt $12,355 11,077 NM 6.30% 9.47% 10.13% NM 600 572 3,510 7,754 5,978 5,632 10.80% Equity Debt/ mkt. cap capital 12,700 49% 14,718 43% NM NM NM NM 25% 26% 1,773 1,615 12,782 11,032 9,104 11,866 34% 22% 41% 34% Cost of debt 6.55% 9.56% 10.22% 6.80% 9.65% 10.31% Tax Unlevered rate beta 1.14 35% 35% 0.98 NM NM NM 1.29 1.28 1.10 0.99 NM 35% 35% 35% 35% 35% 35% 1.13 1.12 7.05% 9.73% 10.40% 10.88% 10.97% 11.06% PROJECT PLATO 28

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