AIRTHREAD ACQUISITION Operating Assumptions

Revenue Projections: 2008 2009 2010 2011 2012

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1) 7.5% 7.5% 7.5% 7.5% 7.5%

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenue 20.0% 20.0% 20.0% 20.0% 20.0%

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

(1) Based on a 360-day year. Days Payable, Deferred Service Revenue, and Days Accrued Liabilities are
 based on total cash operating expenses.
(2) Includes investments in property, plant & equipment, as well as licenses and customer lists.

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AIRTHREAD ACQUISITION Licensing Agreemts

Total Consolidated Markets:

Region Population Customers Penetration
Central US 65,096 3,846 5.9%
Mid-Atlantic 11,677 1,180 10.1%
New England 2,830 518 18.3%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 82,371 6,122 7.4%

Total Operating Markets:

Region Population Customers Penetration
Central US 32,497 3,846 11.8%
Mid-Atlantic 7,346 1,180 16.1%
New England 2,344 518 22.1%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 44,955 6,122 13.6%
Harvard Business Publishing
AIRTHREAD ACQUISITION Customer Operating Data

Customer Data: 2005 2006 2007

Net Customer Additions 301 310 477
Cost Per Customer Addition 372 385 487
Cost of New Customer Additions 111,972 119,350 232,299

Cost of Equipment Sold/Equipment Revenue 251.3% 219.9% 239.8%

Monthly Churn Rate 2.1% 2.1% 1.7%

Revenue Per Minute 2005 2006 2007

Monthly ARPU 45.24 47.23 51.13
Customer Minutes Per Month 625 704 859
Revenue Per Minute 0.0724 0.0671 0.0595
Harvard Business Publishing
AIRTHREAD ACQUISITION Income Statement
Historical Operating Results

Operating Results: 2005 2006 2007

Service Revenue 2,827.0 3,214.4 3,679.2
Plus: Equipment Sales 203.7 258.7 267.0
Total Revenue 3,030.8 3,473.2 3,946.3
Less: System Operating Expenses 604.1 639.7 717.1
Less: Cost of Equipment Sold 511.9 568.9 640.2
Less: Selling, General & Administrative 1,217.7 1,399.6 1,555.6
EBITDA 697.0 865.0 1,033.3
Less: Depreciation & Amortization 490.1 555.5 582.3
EBIT 206.9 309.5 451.1
Less: Interest Expense 84.9 93.7 84.7
Plus: Equity in Earnings of Affiliates 66.7 93.1 90.0
Plus: Gains (Losses) on Investments 18.1 50.8 83.1
Plus: Other Income 54.5 (46.6) 7.0
EBT 261.3 313.1 546.5
Less: Taxes 95.9 120.6 216.7
Income Before Minority Interest 165.5 192.5 329.8
Less: Minority Interest 10.5 13.0 15.1
Net Income 155.0 179.5 314.7
Harvard Business Publishing
AIRTHREAD ACQUISITION Amortization Schedule
Term Loan Amortization

Annual Amortization Annual Amortization

Payment Interest Principal Balance Period Payment Interest Principal Balance Period
Date: 41 5.50% 3,758 120 Date: 41 5.50% 2,698 84
1/31/2008 41 17 24 3,734 1 6/30/2011 41 12 28 2,669 42
2/28/2008 41 17 24 3,710 2 7/31/2011 41 12 29 2,641 43
3/31/2008 41 17 24 3,687 3 8/31/2011 41 12 29 2,612 44
4/30/2008 41 17 24 3,663 4 9/30/2011 41 12 29 2,583 45
5/31/2008 41 17 24 3,639 5 10/31/2011 41 12 29 2,554 46
6/30/2008 41 17 24 3,615 6 11/30/2011 41 12 29 2,525 47
7/31/2008 41 17 24 3,590 7 12/31/2011 41 12 29 2,496 48
8/31/2008 41 16 24 3,566 8 1/31/2012 41 11 29 2,467 49
9/30/2008 41 16 24 3,542 9 2/28/2012 41 11 29 2,437 50
10/31/2008 41 16 25 3,517 10 3/31/2012 41 11 30 2,408 51
11/30/2008 41 16 25 3,492 11 4/30/2012 41 11 30 2,378 52
12/31/2008 41 16 25 3,468 12 5/31/2012 41 11 30 2,348 53
1/31/2009 41 16 25 3,443 13 6/30/2012 41 11 30 2,318 54
2/28/2009 41 16 25 3,418 14 7/31/2012 41 11 30 2,288 55
3/31/2009 41 16 25 3,393 15 8/31/2012 41 10 30 2,257 56
4/30/2009 41 16 25 3,367 16 9/30/2012 41 10 30 2,227 57
5/31/2009 41 15 25 3,342 17 10/31/2012 41 10 31 2,196 58
6/30/2009 41 15 25 3,317 18 11/30/2012 41 10 31 2,166 59
7/31/2009 41 15 26 3,291 19 12/31/2012 2,176 10 2,166 0 60
8/31/2009 41 15 26 3,265 20
9/30/2009 41 15 26 3,239 21
10/31/2009 41 15 26 3,214 22
11/30/2009 41 15 26 3,188 23
12/31/2009 41 15 26 3,161 24
1/31/2010 41 14 26 3,135 25
2/28/2010 41 14 26 3,109 26
3/31/2010 41 14 27 3,082 27
4/30/2010 41 14 27 3,055 28
5/31/2010 41 14 27 3,029 29
6/30/2010 41 14 27 3,002 30
7/31/2010 41 14 27 2,975 31
8/31/2010 41 14 27 2,948 32
9/30/2010 41 14 27 2,920 33
10/31/2010 41 13 27 2,893 34
11/30/2010 41 13 28 2,865 35
12/31/2010 41 13 28 2,838 36
1/31/2011 41 13 28 2,810 37
2/28/2011 41 13 28 2,782 38
3/31/2011 41 13 28 2,754 39
4/30/2011 41 13 28 2,726 40
5/31/2011 41 12 28 2,698 41

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Harvard Business Publishing
Wireless Business Subscribers: 2008 2009 2010 2011 2012
Average Monthly Subscribers (in M 0.3 0.5 0.7 1.0 1.2
Average Monthly Minutes ### ### ### ### ###
Total Monthly Minutes 257.7 442.4 637.9 938.7 1,160.2
Revenue Per Minute 5.1% 5.1% 5.1% 5.1% 5.1%
Annual Business Revenue Increase 156.5 268.6 387.3 569.9 704.5

Backhaul Savings: 2008 2009 2010 2011 2012

System Operating Expenses
Backhaul Percentage
Estimated Backhaul Costs
Reduction in Backhaul Costs
Backhaul Savings
838.9 956.3 1,075.8 1,183.4 1,266.3
20.0% 20.0% 20.0% 20.0% 20.0%
167.8 191.3 215.2 236.7 253.3
0.0% 7.0% 12.0% 22.2% 30.0%
0.0 13.4 25.8 52.5 76.0
AIRTHREAD ACQUISITION Balance She

Assets: 2005 2006 2007 2008 2009 2010 2011 2012 Type of Asset
Beginning Cash +FCF-
Cash & Cash Equivalents 29.0 32.9 204.5 88 14 0 0 0 Interest*(1-Tax%)-Principle Non Operating
Marketable Securities 0.0 249.0 16.4 16 16 16 16 16 Non Operating
Accounts Receivable 362.4 407.4 435.5 522 595 669 736 788 Operating Assets
Inventory 92.7 117.2 101.0 135 154 173 190 204 Operating Assets
Prepaid Expenses 32.1 35.0 41.6 47 53 60 66 71 Operating Assets
Deferred Taxes 8.2 0.0 18.6 19 19 19 19 19 Non Operating
Average of Other Curent Assets
for last 3 years and assuming it
Other Current Assets 15.5 13.4 16.2 15.0 15.0 15.0 15.0 15.0 doesn’t change Operating Assets
Total Current Assets 539.9 854.9 833.8 841 866 953 1,043 1,112

Property, Plan & Equipment 2,553.0 2,628.8 2,595.1 2,521.1 2,436.8 2,436.8 2,484.5 2,586.6 PPE Prev Yr.+CAPEXCurrent Yr.-DEP Current Yr.
Licenses 1,362.3 1,494.3 1,482.4 1,482 1,482 1,482 1,482 1,482 Non Operating
Customer Lists 47.6 26.2 15.4 15 15 15 15 15 Non Operating
Marketable Equity Securities 225.4 4.9 0.0 0 0 0 0 0 Non Operating
Investments in Affiliated Entities 172.1 150.3 157.7 158 158 158 158 158 Non Operating
Long Term Note Receivable 4.7 4.5 4.4 4 4 4 4 4 Non Operating
Goodwill 481.2 485.5 491.3 491 491 491 491 491 Non Operating
Other Long Term Assets 30.0 31.1 31.8 31.8 31.8 31.8 31.8 31.8 Non Operating
Total Assets 5,416.2 5,680.6 5,611.9 5,546 5,486 5,572 5,710 5,882 Non Operating

Liabilities & Owners' Equity:

Accounts Payable 254.1 254.9 260.8 335 382 430 473 506 Operating Assets
Deferred Revenue & Deposits 111.4 123.3 143.4 163 186 209 230 246 Operating Assets
Accrued Liabilities 42.9 47.8 59.2 65 74 83 91 98 Non Operating
Taxes Payable 36.7 26.9 43.1 43 43 43 43 43 Non Operating
Deferred Taxes 0.0 26.3 0.0 0 0 0 0 0 Non Operating
Note Payable 135.0 35.0 0.0 0 0 0 0 0 Non Operating
Forward Contract 0.0 159.9 0.0 0 0 0 0 0 Non Operating
Derivative Liability 0.0 88.8 0.0 0 0 0 0 0 Non Operating
Other Current Liabilities 82.6 93.7 97.7 97.7 97.7 97.7 97.7 97.7 Non Operating
Total Current Liabilities 662.7 856.7 604.2 704 783 863 935 991
Non Operating
Long Term Debt 1,001.4 1,001.8 1,002.3 3,468 3,161 2,838 2,496 2,254 Non Operating
Forward Contracts 159.9 0.0 0.0 0 0 0 0 0 Non Operating
Derivative Liability 25.8 0.0 0.0 0 0 0 0 0 Non Operating
Deferred Tax Liability 647.1 601.5 554.4 554 554 554 554 554 Non Operating
Asset Retirement Obligation 90.2 127.6 126.8 127 127 127 127 127 Non Operating
Other Deferred Liabilities 46.2 62.9 84.5 85 85 85 85 85
Minority Interest 41.9 36.7 43.4 43 43 43 43 43 Non Operating

Common Stock & Paid-In Capital 1,375.0 1,378.9 1,404.1 1,404 1,404 1,404 1,404 1,404 Non Operating
Total Equity 2,741 2,993 3,196 565 733 1,062 1,470 1,827
Total Liabilities & Owners' Equity 5,416.2 5,680.6 5,611.9 5,545.7 5,486.0 5,572.4 5,710.3 5,881.9
Harvard Business Publishi
Balance Sheet
rd Business Publishing
AIRTHREAD ACQUISITION Wireless Comparables

Equity Net Debt/ Debt/ Equity Net Beta

Comparable Companies: Market Value Debt Value Equity Beta1 Revenue EBIT EBITDA Income Unlevered

Universal Mobile 118,497 69,130 36.8% 58.3% 0.86 43,882 11,795 16,949 3,794 0.64 Using Hamada's Equation BL=BU(1+
Neuberger Wireless 189,470 79,351 29.5% 41.9% 0.89 42,684 7,020 14,099 4,103 0.71
Agile Connections 21,079 5,080 19.4% 24.1% 1.17 34,698 1,631 9,914 (30) 1.02
Big Country Communications 26,285 8,335 24.1% 31.7% 0.97 38,896 6,702 12,614 3,384 0.81
Rocky Mountain Wireless 7,360 3,268 30.7% 44.4% 1.13 4,064 510 1,028 240 0.89
Average 28.1% 40.1% 1.00 0.82 Average of Asset Beta's
28%
1) Equity betas were estimated on a weekly based on weekly stock returns over a three year period.
Note: The current industry and competitor leverage ratios reflect the historical averages that existed over the past three years.

Rf 4.25 Investment grade minus spread (5.5%-1.25%)

MRP 5
Beta Unlevered 0.82
Ke 8.33 in % Ke=Rf+ Avg.Ba* Market Risk Premium

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da's Equation BL=BU(1+(1-T)D/E)

Asset Beta's
Revenue Projections: 2008 2009 2010 2011 2012
Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1 7.5% 7.5% 7.5% 7.5% 7.5%

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenu 20.0% 20.0% 20.0% 20.0% 20.0%

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

Without Synergy
EBIDTA 1,111 1,267 1,425 1,568 1,677
Depreciation & Amortization 705 804 867 922 953
EBIT 406 463 558 645 724
EBIT*(1-Tax%) 244 278 335 387 435
Interest 44 95 169 240 306
PAT 217 221 233 243 251

Calculation for Working Capital

Accounts Receivable 522 595 669 736 788
Days Sales Equip. Rev. 135 154 173 190 204
Prepaid Expenses 47 53 60 66 71
Other Current Assets 15 15 15 15 15
Total Current Assets 719 817 918 1008 1077

Accounts Payable 335 382 430 473 506

Deferred Serv. Revenue 163 186 209 230 246
Accrued Liabilities 65 74 83 91 98
Total Current Liability 563 642 722 795 850

Working Capital 131 155 175 195 213 227

Less: Change in WC 25 20 20 18 14
Less: Capex 631 720 867 970 1,055

FCF 293 342 315 321 319

With Synergy

EBIDTA 1,111 1,267 1,425 1,568 1,677

Impact of System Operating Expenses 31 54 77 114 141
Add :Impact of Equipment Revenue 12 20 29 43 53
Less: Impact of SGA 62 108 155 228 282
Less: Impact of Depreciation & Amortiz 730 847 930 1,014 1,066
Add:Cost Synergies - Backhaul Savings 0 13 26 53 76
Add:Revenue Synergy 156 269 387 570 704
EBIT 455 561 705 877 1,021
EBIT*(1-Tax%) 273 336 423 526 613

Accounts Receivable 540 626 714 802 869

Days Sales Equip. Rev. 135 154 173 190 204
Prepaid Expenses 47 53 60 65 70
Other Current Assets 15 15 15 15 15
Total Current Assets 737 848 962 1073 1158

Accounts Payable 335 381 428 468 499

Deferred Serv. Revenue 169 197 224 252 274
Accrued Liabilities 65 73 82 90 96

Total Current Liability 569 651 734 811 869

Working Capital 131 167 197 228 262 289

Less Change in WC 37 30 30 35 27
Less Capex 653 757 925 1057 1164

FCF 314 397 397 448 488

Assumption

DSO*Total Revenue/360
DOI*Equipment Rev/360
1.38% of Cash Operating Expenses
No information is given, therefore considered as operating for WC Calc.

(COGS,SGA& System Expenses/360)*DPO

Service Revenue*Days Sale Equipment Revenue
(COGS,SGA& System Expenses/360)*DPO
OCA-OCL

Additional Expenses on Revenue @20%

7.5% of Addnl.Equipment Revenue
40% of Additioanl Revenue
Incremental (Avg 15%) of Total Revenue
Exhibit 6
Table 5

Additional Factor of Synergy Revenue

No Change
Additional Factor of Synergy Revenue
No Change

Additionally factor Cost Synergy

Additionally factor Cost Synergy
Additionally factor Cost Synergy

OCA-OCL

Capx as % of Total Revenue

 APV Without Synergy Ke 8.33
Re-Investment in 2 237.82
2008 2009 2010 2011 2012 NOPAT 2012 1021
1 2 3 4 5 Invested Capital 4038.30
Equity Firm Calculation Reinvestment Rate 23.29%
FCF 293 342 315 321 319 ROIC 12.62%
PV FCF 270 292 247 233 214 Growth Rate 2.94%
Terminal Value 6087
Total PV 5337

Kd 5.50%
Tax Rate ###

Financing Side Effects

Interest 199 183 166 148 128
Principle 290 306 324 342 ###
ITS 80 73 66 59 51
PV of ITS 76 66 56 48 39
Terminal Value of ITS ###
Total PV 1862

Firm Value 7215

Enterprise Value 7199

APV With Synergy

2008 2009 2010 2011 2012

1 2 3 4 5
Equity Firm Calculation
FCF 314 397 397 448 488
PV FCF 289 338 312 326 327
Terminal Value 9330
Total PV 10909

Kd 5.50%
Tax Rate ###

Financing Side Effects

Interest 199 183 166 148 128
Principle 290 306 324 342 ###
ITS 80 73 66 59 51
PV of ITS 76 66 56 48 39
Terminal Value of ITS ###
Total PV 2344

Firm Value 13269

Enterprise Value 13253
 2008 2009 2010 2011 2012
Service Revenue 4,194.33 4,781.54 5,379.23 5,917.15 6,331.35
Equipment Revenue 314.77 358.84 403.70 444.07 475.15
Total revenue from operation 4,509.10 5,140.38 5,782.93 6,361.22 6,806.50
System Operating Expenses 838.87 956.31 1,075.85 1,183.43 1,266.27
Cost of Equipment Sold 755.46 861.22 968.87 1,065.76 1,140.36
Selling, General & Administrative 1,803.64 2,056.15 2,313.17 2,544.49 2,722.60
Total operating Expenses 3,397.96 3,873.68 4,357.89 4,793.68 5,129.23
Gross Profit 1,111.14 1,266.70 1,425.04 1,567.54 1,677.27
Depreciation and Ammotization 705.23 803.96 867.44 922.38 952.91
EBIT 405.91 462.74 557.60 645.16 724.36
Add depreciation and Ammotization 755.46 861.22 968.87 1,065.76 1,140.36
Net change in working capital 24.65 19.67 20.02 18.02 13.87
Net change in capex 631.27 719.65 867.44 970.09 1,055.01
Operating Cash Flow 505.44 584.64 639.01 722.82 795.84
Interest 199.43 183.08 165.80 147.55 128.27
Subract (EBIT-Interest)*tax rate 82.59 111.87 156.72 199.05 238.44
Capital Cash flow 422.85 472.77 482.29 523.77 557.40
Beta Asset 0.82 0.82 0.82 0.82 0.82 Assumption : Avg of unlivered B
Cost of Asset 0.08 0.08 0.08 0.08 0.08
Discount factor 0.92 0.85 0.79 0.73 0.67
Present value of CCF 390.34 402.88 379.39 380.35 373.65
19Xof P/E 19.00 10647.15
Debt
TV 10647.15
PV of Terminal value 6,588.64
Total Enterprise Value 8,515.25
Rf 4.25%
MRP 5.00%

Firm Value 8,531.61

Assumption : Avg of unlivered B of industry

Growth Rate from Tab APV Method

 2008 2009 2010 2011
Service Revenue 4,194.33 4,781.54 5,379.23 5,917.15
Equipment Revenue 314.77 358.84 403.70 444.07
Revenue increase due to synergies 156.00 269.00 387.00 570.00
Total revenue from operation 4,665.10 5,409.38 6,169.93 6,931.22
System Operating Expenses 838.87 956.31 1,075.85 1,183.43
Cost of Equipment Sold 755.46 861.22 968.87 1,065.76
Selling, General & Administrative 1,803.64 2,056.15 2,313.17 2,544.49
Cost reduction due to synergies 0.00 13.40 25.80 52.50
Total operating Expenses 3,397.96 3,860.28 4,332.09 4,741.18
Gross Profit 1,267.14 1,549.10 1,837.84 2,190.04
Depreciation and Ammotization 705.23 803.96 867.44 922.38
EBIT 561.91 745.14 970.40 1,267.66
Add depreciation and Ammotization 755.46 861.22 968.87 1,065.76
Net change in working capital 24.65 19.67 20.02 18.02
Net change in capex 631.27 719.65 867.44 970.09
Operating Cash Flow 661.44 867.04 1,051.81 1,345.32
Interest 199.43 183.08 165.80 147.55
Subract (EBIT-Interest)*tax rate 144.99 224.83 321.84 448.05
Capital Cash flow 516.45 642.21 729.97 897.27
Debt 4,470.00 4,163.00 3,840.00 3,498.00
Subract (EBIT-Interest)*tax rate 144.99 224.83 321.84 448.05
Capital Cash flow 516.45 642.21 729.97 897.27
Beta Asset 0.82 0.82 0.82 0.82
Cost of Asset 0.08 0.08 0.08 0.08
Discount factor 0.92 0.85 0.79 0.73
Present value of CCF 476.75 547.27 574.23 651.58
19Xof P/E 19.00
Debt
TV
PV of Terminal value 12,120.51
Total Enterprise Value 15,057.71

Firm Value 15,074.07

 2012
6,331.35
475.15
704.00
7,510.50
1,266.27
1,140.36
2,722.60
76.00
5,053.23
2,457.27
952.91
1,504.36
1,140.36
13.87
1,055.01
1,575.84
128.27
550.44
1,025.40
1,002.00
550.44 Assumption : Avg of unlivered B of industry
1,025.40
0.82 Rf 4.3%
0.08328 Rm 5%
0.67
687.38
19586.59 Growth Rate from Tab APV Method

19586.59
 AirThread Debt Capacity:
Pre-Synergy Est. 2007 EBI 1,033 Total Borrowing 3,758
Interest Coverage Ratio 5.00x Amortization Period 10 Years
Maximum Interest Expense 207 Payments Per Year 12
Interest Rate 5.50% Monthly Payment 41
Est. Debt Capacity 3,758
Firm Value
With
Method Without Synergy
Synergy
CCF 15,074.07 8,532
APV 13,269.1 7215

Debt/ Debt/ Asset Equity Cost of Cost of Assumptions:

Value Equity Beta Beta Equity Debt Marginal Tax Rate 40.0%
0.0% 0.0% 0.82 0.82 8.33% 5.50% Debt Beta 0.00
5.0% 5.3% 0.82 0.86 8.54% 5.50%
10.0% 11.1% 0.82 0.91 8.78% 5.50% Market Risk Premi 5.00%
15.0% 17.6% 0.82 0.96 9.05% 5.50% Risk-Free Rate 4.25%
20.0% 25.0% 0.82 1.02 9.35% 5.50%
25.0% 33.3% 0.82 1.09 9.69% 5.50% Cost of Debt 5.50%
28.1% 39.1% 0.82 1.13 9.92% 5.50%
30.0% 42.9% 0.82 1.17 10.08% 5.50%
35.0% 53.8% 0.82 1.25 10.52% 5.50%
40.0% 66.7% 0.82 1.36 11.05% 5.50%
45.0% 81.8% 0.82 1.48 11.66% 5.50%
47.0% 88.7% 0.82 1.54 11.94% 5.50%
50.0% 100.0% 0.82 1.63 12.41% 5.50%
10,647.15 8.33% 8.54% 8.78% 9.05% 9.35% 9.69% 9.92% 10.08% 10.52% 11.05% 11.66% 11.94%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
12.41%