Credit Suisse Investment Banking Pitch Book
CONFIDENTIAL
Assumptions
Tax Rate
Risk Free Rate (20 year)
Equity Risk Premium
Debt Sensitivity
Industry Statistics
SDS
ADP
FISV
OST
SEIC
BSG
CME
WACC Analysis - Iverson
FDS
AX
Cost of Capital
0.0% 0.0%
5.0%
Average
5.3%
10.0% 11.1%
15.0% 17.0%
20.0% 25.0%
25.0% 33.3%
30.0% 42.9%
35.0% 53.8%
40.0% 66.7%
45.0% 81.8%
50.0% 100.0%
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.11
40.00%
4.75%
Debt/ Debiti Average Lev.
Capital Equity Unlev. Beta Factor
7.20%
0.50%
CREDIT FIRST
SUISSE BOSTON
Bota
P
1.04
0.89
0.92
0.90
1.28
1.15
1.62
1.13
1.47
Debt /
Mit Eg.
7.5%
0.3%
8.1%
42.9%
21.8%
0.0%
0.0%
0.2%
9.0%
Levered
Beta
Levering Unlevered Cost of
Fastor
Bota
Equity
1.05
1.00
1.05
1.20
1.00
1.13
1.00
1.00
1.00
Cost of
Equity
1.11
12.7%
1.15
13.0%
1.19 13.3%
Pro-tax Cost of Debt
After-tax Cost of Debt
1,00
1.03
1.07
1.11
1.23
13.8%
1.15
1.28 13.9%
1.20
1.34
14.3%
1.28
1.40
14.8%
1.32 1.47 15.3%
1.40
1.56 15.9%
1.49
1.66
16.7%
1.78
17.6%
0.00
0.80
0.88
0.70
1.27
1.02
1.02
1.13
1.11
(13 vowpoated yel on the 20-yo US Treasurybend (32405)
122 The average store spread between the num on stocks and bonds (son)
3) BanaUS Equy Bata Book pretions
14) Levng Fact 1 [(1 trate) [erauty 1
15) Unevered Beta Bite/Levering Foctor)
MLeveres Bela Bets Leveting Factor
Debt
Capital
0.0%
5.0%
100%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
11.9%
11.1%
11.0%
10.2%
13.9%
12.0%
16.4%
12.8%
15.3%
12.7%
Size
Premium
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
5.0% 5.5% 6.0% 0.5% 7.0% 7.5 % 8.0% 8.5%
3.0% 3.3 % 3.6% 3.9% 4.2% 4.5% 4.8 % 5.1%
WDGHTED AVERAGE COST OF CAPITAL
9.0%
9.0% 9.5% 10.0%
54% 5.7% 6.0%
12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7 % 12.7% 12.7%
12.5% 12.5% 12.5% 12.5% 12.6% 12.6% 12.6% 12.6% 12.6% 12.6% 12.6%
12.2% 12.3% 12.3% 12.3% 12.4% 12.4% 12.4% 12.5% 12.5% 12.5% 12.5 %
12.0% 12.0% 12.1% 12.1% 12.2% 12.2% 12.3% 12.3% 12.4% 12.4% 12.5%
11.8% 11.8% 11.9% 11.9% 12.0% 12.1% 12.1% 12.2% 12.2% 12.3% 12.4%
11.5% 11.6% 11.7% 11.7% 11.8% 11.9% 12.0% 12.0% 12.1% 12.2 % 12.3%
11.3% 11.4% 11.4% 11.5% 11.6% 11.7% 11.3% 11.9% 12.0% 12.1% 12.2%
11.0% 11.1% 11.2% 11.3% 11.4% 11.5% 11.8% 11.8% 11.9% 12.0% 12.1%
10.8% 10.9% 11.0% 11.1% 11.2% 11.4% 11.5% 11.6% 11.7% 11.8% 12.0%
10.5% 10.7% 10.8% 10.9% 11.1% 11.2% 11.3% 11.5% 11.6% 11.7% 11.9%
10.3% 10.4% 10.6% 10.7% 10.9% 11.0% 11.2% 11.3% 11.5% 11.6 % 11.8%
01 Custofauty Rt B1-Bge Pe
(WACC Re Reken on Dec
Row Run on Eaury
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