COST OF EQUITY - CAPITAL ASSET PRICING MODEL

Cost Of Equity = Rf + ( Rm - Rf )* β

PERCENTAGE
RETURN SHARE PERCENTAGE
Date INDEX (daily) PRICE RETURN (daily)
20-Apr-05 1929.7 0.98 180.95 -1.24
21-Apr-05 1948.55 0.96 178.7 1.62
22-Apr-05 1967.35 0.18 181.6 1.29
25-Apr-05 1970.95 -0.70 183.95 -0.46
26-Apr-05 1957.1 -1.11 183.1 -1.45
27-Apr-05 1935.4 0.30 180.45 1.30
28-Apr-05 1941.3 -2.00 182.8 -3.17
29-Apr-05 1902.5 0.75 177 0.00
2-May-05 1916.75 0.21 177 4.52
3-May-05 1920.7 1.14 185 9.30
4-May-05 1942.6 1.07 202.2 -4.30
5-May-05 1963.3 0.72 193.5 0.05
6-May-05 1977.5 1.18 193.6 2.69
9-May-05 2000.75 -0.32 198.8 0.10
10-May-05 1994.3 -0.42 199 4.62
11-May-05 1985.95 0.36 208.2 5.31
12-May-05 1993.15 -0.24 219.25 -3.60
13-May-05 1988.3 1.22 211.35 3.03
16-May-05 2012.6 -1.08 217.75 2.20
17-May-05 1990.8 -0.40 222.55 2.76
18-May-05 1982.75 0.41 228.7 -1.90
19-May-05 1990.85 0.08 224.35 2.65
20-May-05 1992.4 1.08 230.3 1.00
23-May-05 2013.9 0.73 232.6 -2.64
24-May-05 2028.6 0.75 226.45 0.09
25-May-05 2043.85 1.51 226.65 1.99
26-May-05 2074.7 0.08 231.15 -0.43
27-May-05 2076.4 -0.19 230.15 -3.35
30-May-05 2072.4 0.73 222.45 7.75
31-May-05 2087.55 0.00 239.7 -0.35
1-Jun-05 2087.55 -1.10 238.85 -2.49
2-Jun-05 2064.65 1.43 232.9 2.21
3-Jun-05 2094.25 -0.09 238.05 2.00
4-Jun-05 2092.35 0.02 242.8 -2.37
6-Jun-05 2092.8 0.26 237.05 -0.44
7-Jun-05 2098.15 0.68 236 -2.54
8-Jun-05 2112.4 -0.44 230 -0.91
9-Jun-05 2103.2 -0.60 227.9 2.70
10-Jun-05 2090.6 0.58 234.05 2.03
13-Jun-05 2102.75 0.46 238.8 4.31
14-Jun-05 2112.35 0.77 249.1 2.59
15-Jun-05 2128.65 -0.23 255.55 -3.07
16-Jun-05 2123.7 -0.01 247.7 -1.05
17-Jun-05 2123.4 0.99 245.1 -2.04
20-Jun-05 2144.35 1.20 240.1 1.23
21-Jun-05 2170 0.80 243.05 -0.31
22-Jun-05 2187.35 -0.16 242.3 -1.03
23-Jun-05 2183.85 0.48 239.8 0.42
24-Jun-05 2194.35 0.25 240.8 0.25
27-Jun-05 2199.8 -1.36 241.4 -2.38
28-Jun-05 2169.85 1.00 235.65 3.42
29-Jun-05 2191.65 1.32 243.7 -0.84
30-Jun-05 2220.6 -0.39 241.65 -1.24
1-Jul-05 2211.9 0.85 238.65 0.78
4-Jul-05 2230.65 -0.89 240.5 -1.98
5-Jul-05 2210.75 0.79 235.75 1.93
6-Jul-05 2228.2 -2.19 240.3 -1.98
7-Jul-05 2179.4 0.77 235.55 0.45
8-Jul-05 2196.2 1.03 236.6 3.40
11-Jul-05 2218.85 0.09 244.65 1.31
12-Jul-05 2220.8 -0.75 247.85 -2.00
13-Jul-05 2204.05 -0.86 242.9 0.43
14-Jul-05 2185.1 1.26 243.95 -0.45
15-Jul-05 2212.55 0.97 242.85 -0.04
18-Jul-05 2234 0.15 242.75 0.54
19-Jul-05 2237.3 0.21 244.05 -6.80
20-Jul-05 2241.9 -0.51 227.45 -1.69
21-Jul-05 2230.5 1.57 223.6 -0.81
22-Jul-05 2265.6 1.15 221.8 -1.83
25-Jul-05 2291.75 0.50 217.75 -3.58
26-Jul-05 2303.15 0.69 209.95 3.05
27-Jul-05 2319.1 -0.29 216.35 -2.20
29-Jul-05 2312.3 0.25 211.6 0.09
1-Aug-05 2318.05 1.54 211.8 1.91
2-Aug-05 2353.65 0.14 215.85 -3.80
3-Aug-05 2357 0.46 207.65 0.51
4-Aug-05 2367.8 -0.28 208.7 0.22
5-Aug-05 2361.2 -1.56 209.15 1.03
8-Aug-05 2324.4 -0.25 211.3 0.07
9-Aug-05 2318.7 1.79 211.45 0.80
10-Aug-05 2360.15 0.88 213.15 2.32
11-Aug-05 2380.9 -0.81 218.1 0.28
12-Aug-05 2361.55 0.35 218.7 0.30
16-Aug-05 2369.8 1.41 219.35 -1.12
17-Aug-05 2403.15 -0.61 216.9 0.46
18-Aug-05 2388.45 -0.21 217.9 0.87
19-Aug-05 2383.45 -0.65 219.8 2.39
22-Aug-05 2367.85 -1.76 225.05 -2.09
23-Aug-05 2326.1 -0.15 220.35 -1.86
24-Aug-05 2322.5 1.38 216.25 1.34
25-Aug-05 2354.55 0.11 219.15 5.27
26-Aug-05 2357.05 -0.82 230.7 3.47
29-Aug-05 2337.65 1.29 238.7 -0.13
30-Aug-05 2367.75 0.71 238.4 -1.30
31-Aug-05 2384.65 0.88 235.3 -0.30
1-Sep-05 2405.75 0.42 234.6 -1.66
2-Sep-05 2415.8 0.30 230.7 2.90
5-Sep-05 2422.95 0.24 237.4 -2.36
6-Sep-05 2428.65 1.06 231.8 1.47
8-Sep-05 2454.45 0.04 235.2 2.91
9-Sep-05 2455.45 1.17 242.05 -0.60
12-Sep-05 2484.15 0.65 240.6 -0.96
13-Sep-05 2500.35 -0.32 238.3 -1.91
14-Sep-05 2492.45 1.26 233.75 1.33
15-Sep-05 2523.95 1.13 236.85 0.02
16-Sep-05 2552.35 0.58 236.9 1.35
19-Sep-05 2567.1 0.42 240.1 0.02
20-Sep-05 2578 -0.42 240.15 0.73
21-Sep-05 2567.3 -3.54 241.9 -0.72
22-Sep-05 2476.5 0.05 240.15 0.65
23-Sep-05 2477.75 3.21 241.7 0.41
26-Sep-05 2557.35 0.68 242.7 -0.33
27-Sep-05 2574.85 0.90 241.9 -0.12
28-Sep-05 2598.05 0.51 241.6 -0.58
29-Sep-05 2611.2 -0.38 240.2 -1.31
30-Sep-05 2601.4 1.10 237.05 -0.17
3-Oct-05 2630.05 1.27 236.65 0.40
4-Oct-05 2663.35 -0.71 237.6 -1.05
5-Oct-05 2644.4 -2.47 235.1 -0.53
6-Oct-05 2579.15 -0.20 233.85 -0.38
7-Oct-05 2574.05 -0.28 232.95 -2.66
10-Oct-05 2566.85 0.88 226.75 -3.11
11-Oct-05 2589.55 -2.02 219.7 2.07
13-Oct-05 2537.3 -2.08 224.25 -2.25
14-Oct-05 2484.4 0.03 219.2 0.52
17-Oct-05 2485.15 -0.68 220.35 2.02
18-Oct-05 2468.2 -2.26 224.8 1.13
19-Oct-05 2412.45 -0.70 227.35 0.79
20-Oct-05 2395.45 2.02 229.15 0.35
21-Oct-05 2443.75 -2.00 229.95 0.26
24-Oct-05 2394.85 0.98 230.55 -1.78
25-Oct-05 2418.2 -0.40 226.45 -0.64
26-Oct-05 2408.5 -2.31 225 -0.84
27-Oct-05 2352.9 -1.57 223.1 -3.25
28-Oct-05 2316.05 2.37 215.85 0.42
31-Oct-05 2370.95 0.67 216.75 1.31
1-Nov-05 2386.75 1.35 219.6 -0.82
2-Nov-05 2419.05 1.76 217.8 1.19
7-Nov-05 2461.6 1.26 220.4 1.18
8-Nov-05 2492.65 -0.14 223 -1.35
9-Nov-05 2489.1 0.47 220 -1.20
10-Nov-05 2500.7 1.92 217.35 0.60
11-Nov-05 2548.65 0.39 218.65 1.26
14-Nov-05 2558.7 0.94 221.4 -1.38
16-Nov-05 2582.75 0.82 218.35 1.08
17-Nov-05 2603.95 0.62 220.7 -1.29
 18-Nov-05 2620.05 -0.67 217.85 0.90
21-Nov-05 2602.5 -1.14 219.8 -0.27
22-Nov-05 2572.85 1.39 219.2 -0.43
23-Nov-05 2608.6 1.01 218.25 1.88
24-Nov-05 2635 1.11 222.35 2.43
25-Nov-05 2664.3 0.72 227.75 3.25
26-Nov-05 2683.45 1.06 235.15 -0.13
28-Nov-05 2712 -0.51 234.85 1.02
29-Nov-05 2698.3 -1.71 237.25 -2.07
30-Nov-05 2652.25 1.76 232.35 3.64
1-Dec-05 2698.95 -0.04 240.8 -0.98
2-Dec-05 2697.95 -1.39 238.45 1.51
5-Dec-05 2660.5 0.07 242.05 -0.43
6-Dec-05 2662.3 1.15 241 -0.06
7-Dec-05 2693 0.51 240.85 1.93
8-Dec-05 2706.7 1.84 245.5 1.34
9-Dec-05 2756.45 0.72 248.8 2.03
12-Dec-05 2776.2 1.30 253.85 0.33
13-Dec-05 2812.3 -0.28 254.7 -0.22
14-Dec-05 2804.55 -0.93 254.15 -1.08
15-Dec-05 2778.55 1.14 251.4 3.28
16-Dec-05 2810.15 1.15 259.65 5.18
19-Dec-05 2842.6 -0.58 273.1 3.46
20-Dec-05 2826.2 -0.12 282.55 2.02
21-Dec-05 2822.9 0.44 288.25 0.49
22-Dec-05 2835.25 -1.07 289.65 -2.95
23-Dec-05 2804.85 -1.97 281.1 -1.94
26-Dec-05 2749.6 2.05 275.65 0.80
27-Dec-05 2805.9 -0.42 277.85 0.36
28-Dec-05 2794.05 1.00 278.85 7.62
29-Dec-05 2821.95 0.52 300.1 2.30
12/30/2005* 2836.55 -0.02 307 0.16
2-Jan-06 2835.95 1.67 307.5 -1.46
3-Jan-06 2883.35 0.73 303 -0.66
4-Jan-06 2904.4 -0.16 301 -1.16
5-Jan-06 2899.85 0.49 297.5 -1.34
6-Jan-06 2914 -0.13 293.5 -2.90
9-Jan-06 2910.1 -1.35 285 -1.75
10-Jan-06 2870.8 -0.70 280 -4.64
12-Jan-06 2850.7 -0.01 267 1.50
13-Jan-06 2850.55 -0.61 271 -0.92
16-Jan-06 2833.1 -0.14 268.5 -3.17
17-Jan-06 2829.1 -0.70 260 -2.69
18-Jan-06 2809.2 2.19 253 20.16
19-Jan-06 2870.85 1.05 304 -4.93
20-Jan-06 2900.95 -0.58 289 4.67
23-Jan-06 2884.05 0.83 302.5 2.48
24-Jan-06 2908 1.11 310 -5.65
25-Jan-06 2940.35 1.44 292.5 -4.44
27-Jan-06 2982.75 -0.28 279.5 -4.47
30-Jan-06 2974.5 0.89 267 -1.69
31-Jan-06 3001.1 -0.98 262.5 -7.24
 1-Feb-06 2971.55 -0.14 243.5 1.44
2-Feb-06 2967.45 -0.90 247 2.83
3-Feb-06 2940.6 2.04 254 -1.77
6-Feb-06 3000.45 0.65 249.5 6.41
7-Feb-06 3020.1 -0.37 265.5 -0.94
8-Feb-06 3008.95 0.62 263 -0.19
10-Feb-06 3027.55 0.45 262.5 -0.57
13-Feb-06 3041.15 -0.78 261 -0.96
14-Feb-06 3017.55 0.15 258.5 -0.97
15-Feb-06 3022.2 -0.02 256 0.78
16-Feb-06 3021.6 -1.33 258 -2.71
17-Feb-06 2981.5 0.82 251 -0.20
20-Feb-06 3005.85 0.99 250.5 -1.00
21-Feb-06 3035.5 0.50 248 0.60
22-Feb-06 3050.8 0.37 249.5 2.40
23-Feb-06 3062.1 -0.39 255.5 3.52
24-Feb-06 3050.05 0.57 264.5 4.16
27-Feb-06 3067.45 0.24 275.5 4.90
28-Feb-06 3074.7 1.57 289 -2.08
1-Mar-06 3123.1 0.88 283 1.06
2-Mar-06 3150.7 -0.11 286 1.75
3-Mar-06 3147.35 1.37 291 3.26
6-Mar-06 3190.4 -0.24 300.5 -1.83
7-Mar-06 3182.8 -2.08 295 -2.54
8-Mar-06 3116.7 0.40 287.5 -1.39
9-Mar-06 3129.1 1.75 283.5 0.35
10-Mar-06 3183.9 0.59 284.5 -0.53
13-Mar-06 3202.65 -0.23 283 -1.06
14-Mar-06 3195.35 0.98 280 -1.25
16-Mar-06 3226.6 0.23 276.5 1.27
17-Mar-06 3234.05 0.98 280 7.50
20-Mar-06 3265.65 -0.10 301 -0.83
21-Mar-06 3262.3 -0.68 298.5 -5.19
22-Mar-06 3240.15 0.22 283 0.00
23-Mar-06 3247.15 1.01 283 -1.06
24-Mar-06 3279.8 1.28 280 0.36
27-Mar-06 3321.65 0.10 281 -0.89
28-Mar-06 3325 0.88 278.5 0.54
29-Mar-06 3354.2 1.93 280 20.00
30-Mar-06 3418.95 -0.48 336 1.64
31-Mar-06 3402.55 2.08 341.5 -0.29
3-Apr-06 3473.3 0.28 340.5 -2.35
4-Apr-06 3483.15 0.80 332.5 -1.35
5-Apr-06 3510.9 -1.60 328 -4.12
7-Apr-06 3454.8 0.68 314.5 -2.38
10-Apr-06 3478.45 -2.83 307 -4.40
12-Apr-06 3380 -1.02 293.5 -1.19
13-Apr-06 3345.5 2.38 290 1.21
17-Apr-06 3425.15 2.71 293.5 20.10
18-Apr-06 3518.1 0.50 352.5 11.91
19-Apr-06 3535.85 1.06 394.5 -4.06
20-Apr-06 3573.5 -0.01 378.5 -2.51
 21-Apr-06 3573.05 -0.68 369 8.81
24-Apr-06 3548.9 -2.43 401.5 -2.37
25-Apr-06 3462.65 2.69 392 1.15
26-Apr-06 3555.75 -1.34 396.5 -2.77
27-Apr-06 3508.1 0.01 385.5 -0.65
28-Apr-06 3508.35 1.40 383 3.66
29-Apr-06 3557.6 1.35 397 -2.02
2-May-06 3605.45 0.80 389 1.03
3-May-06 3634.25 0.39 393 -3.94
4-May-06 3648.4 0.43 377.5 -0.79
5-May-06 3663.95 0.80 374.5 0.80
8-May-06 3693.15 0.74 377.5 -1.32
9-May-06 3720.55 0.91 372.5 1.34
10-May-06 3754.25 -1.42 377.5 -1.85
11-May-06 3701.05 -1.38 370.5 0.40
12-May-06 3650.05 -4.03 372 -6.32
15-May-06 3502.95 0.58 348.5 -1.72
16-May-06 3523.3 3.17 342.5 3.36
17-May-06 3635.1 -6.77 354 -16.67
18-May-06 3388.9 -4.19 295 3.90
19-May-06 3246.9 -5.10 306.5 -8.97
22-May-06 3081.35 3.83 279 9.86
23-May-06 3199.35 -2.62 306.5 -0.65
24-May-06 3115.55 1.99 304.5 -2.63
25-May-06 3177.7 1.00 296.5 0.17
26-May-06 3209.6 0.17 297 20.03
29-May-06 3214.9 -0.92 356.5 0.42
30-May-06 3185.3 -3.59 358 -7.26
31-May-06 3071.05 -3.54 332 0.15
1-Jun-06 2962.25 4.36 332.5 -3.76
2-Jun-06 3091.35 -2.42 320 -1.41
5-Jun-06 3016.65 -2.63 315.5 -6.18
6-Jun-06 2937.3 -2.62 296 -8.11
7-Jun-06 2860.45 -4.76 272 -13.42
8-Jun-06 2724.35 5.21 235.5 10.40
9-Jun-06 2866.3 -3.12 260 -0.19
12-Jun-06 2776.85 -4.09 259.5 -7.90
13-Jun-06 2663.3 -1.15 239 -3.14
14-Jun-06 2632.8 6.31 231.5 7.56
15-Jun-06 2798.8 3.27 249 0.80
16-Jun-06 2890.35 0.92 251 -0.40
19-Jun-06 2916.9 -1.91 250 1.00
20-Jun-06 2861.3 2.17 252.5 5.74
21-Jun-06 2923.45 2.44 267 11.05
22-Jun-06 2994.75 1.60 296.5 4.05
23-Jun-06 3042.7 0.25 308.5 -0.16
25-Jun-06 3050.3 -3.51 308 -7.47
26-Jun-06 2943.2 1.33 285 -1.58
27-Jun-06 2982.45 -0.05 280.5 1.43
28-Jun-06 2981.1 0.56 284.5 -1.76
29-Jun-06 2997.9 4.35 279.5 3.04
30-Jun-06 3128.2 0.73 288 3.30
 3-Jul-06 3150.95 -0.39 297.5 -1.18
4-Jul-06 3138.65 1.86 294 -0.51
5-Jul-06 3197.1 -1.27 292.5 -1.71
6-Jul-06 3156.4 -2.55 287.5 -1.91
7-Jul-06 3075.85 2.15 282 -1.60
10-Jul-06 3142 -0.82 277.5 -1.44
11-Jul-06 3116.15 2.56 273.5 1.10
12-Jul-06 3195.9 -0.83 276.5 0.00
13-Jul-06 3169.3 -1.45 276.5 3.07
14-Jul-06 3123.35 -3.71 285 -5.79
17-Jul-06 3007.55 -0.46 268.5 -2.23
18-Jul-06 2993.65 -2.03 262.5 -3.62
19-Jul-06 2932.75 3.08 253 0.40
20-Jul-06 3023.05 -2.58 254 -2.17
21-Jul-06 2945 1.39 248.5 -0.60
24-Jul-06 2985.85 1.83 247 0.20
25-Jul-06 3040.5 2.29 247.5 4.04
26-Jul-06 3110.15 1.48 257.5 -0.97
27-Jul-06 3156.15 -0.80 255 0.59
28-Jul-06 3130.8 0.40 256.5 1.75
31-Jul-06 3143.2 0.15 261 -0.77
1-Aug-06 3147.8 1.09 259 1.54
2-Aug-06 3182.1 0.25 263 7.03
3-Aug-06 3190 -0.42 281.5 -3.55
4-Aug-06 3176.75 -0.81 271.5 2.21
7-Aug-06 3151.1 1.95 277.5 -0.18
8-Aug-06 3212.4 1.31 277 0.72
9-Aug-06 3254.6 0.17 279 -1.61
10-Aug-06 3260.1 0.44 274.5 1.82
11-Aug-06 3274.35 1.18 279.5 5.19
14-Aug-06 3313.1 1.30 294 2.72
16-Aug-06 3356.05 -0.06 302 -1.82
17-Aug-06 3353.9 0.08 296.5 -1.18
18-Aug-06 3356.75 0.28 293 0.68
21-Aug-06 3366 -0.04 295 -0.34
22-Aug-06 3364.6 -0.86 294 -1.02
23-Aug-06 3335.8 1.04 291 -0.34
24-Aug-06 3370.4 0.46 290 1.55
25-Aug-06 3385.95 0.45 294.5 0.00
28-Aug-06 3401.1 0.72 294.5 0.51
29-Aug-06 3425.7 0.14 296 1.86
30-Aug-06 3430.35 -0.48 301.5 1.00
31-Aug-06 3413.9 0.63 304.5 -1.48
1-Sep-06 3435.45 1.21 300 -1.50
4-Sep-06 3476.85 -0.09 295.5 0.68
5-Sep-06 3473.75 0.10 297.5 -0.67
6-Sep-06 3477.25 -0.65 295.5 1.18
7-Sep-06 3454.55 0.49 299 8.19
8-Sep-06 3471.45 -3.03 323.5 -4.02
11-Sep-06 3366.15 0.71 310.5 1.29
12-Sep-06 3389.9 1.91 314.5 1.11
13-Sep-06 3454.55 0.49 318 -0.94
14-Sep-06 3471.6 0.20 315 -1.59
15-Sep-06 3478.6 0.41 310 2.10
18-Sep-06 3492.75 -1.01 316.5 3.95
19-Sep-06 3457.35 1.31 329 13.53
20-Sep-06 3502.8 1.43 373.5 -6.56
21-Sep-06 3553.05 -0.25 349 1.72
22-Sep-06 3544.05 -0.58 355 -1.41
25-Sep-06 3523.45 1.37 350 -3.86
26-Sep-06 3571.75 0.21 336.5 4.16
27-Sep-06 3579.3 -0.21 350.5 -1.28
28-Sep-06 3571.75 0.47 346 1.30
29-Sep-06 3588.4 -0.52 350.5 -0.86
3-Oct-06 3569.6 -1.52 347.5 -1.87
4-Oct-06 3515.35 1.41 341 1.76
5-Oct-06 3564.9 0.13 347 4.32
6-Oct-06 3569.7 -0.07 362 3.87
9-Oct-06 3567.15 0.11 376 -0.40
10-Oct-06 3571.05 -0.35 374.5 -3.47
11-Oct-06 3558.55 1.76 361.5 -0.28
12-Oct-06 3621.05 1.52 360.5 -1.25
13-Oct-06 3676.05 1.30 356 -0.28
16-Oct-06 3723.95 -0.24 355 1.41
17-Oct-06 3715 -0.12 360 -0.69
18-Oct-06 3710.65 -0.89 357.5 -2.24
19-Oct-06 3677.8 -0.03 349.5 1.86
20-Oct-06 3676.85 0.18 356 0.14
21-Oct-06 3683.5 -0.71 356.5 -0.42
23-Oct-06 3657.3 0.55 355 -1.41
26-Oct-06 3677.55 1.68 350 -2.14
27-Oct-06 3739.35 0.80 342.5 -0.88
30-Oct-06 3769.1 -0.66 339.5 -1.91
31-Oct-06 3744.1 0.61 333 -3.00
1-Nov-06 3767.05 0.64 323 3.10
2-Nov-06 3791.2 0.37 333 -0.30
3-Nov-06 3805.35 0.10 332 -1.96
6-Nov-06 3809.25 -0.28 325.5 0.00
7-Nov-06 3798.75 -0.56 325.5 -2.00
8-Nov-06 3777.3 0.51 319 -0.16
9-Nov-06 3796.4 1.01 318.5 -0.16
10-Nov-06 3834.75 0.63 318 -0.79
13-Nov-06 3858.75 0.19 315.5 -0.32
14-Nov-06 3865.9 0.27 314.5 -2.70
15-Nov-06 3876.3 0.01 306 -0.82
16-Nov-06 3876.85 -0.62 303.5 -2.47
17-Nov-06 3852.8 0.09 296 3.21
20-Nov-06 3856.15 1.61 305.5 1.47
21-Nov-06 3918.25 0.93 310 -0.97
22-Nov-06 3954.75 -0.24 307 -1.95
23-Nov-06 3945.45 0.14 301 5.65
24-Nov-06 3950.85 0.46 318 -2.36
27-Nov-06 3968.9 -1.19 310.5 -1.93
28-Nov-06 3921.75 0.16 304.5 1.81
 29-Nov-06 3928.2 0.67 310 -0.32
30-Nov-06 3954.5 1.09 309 7.12
1-Dec-06 3997.6 0.09 331 0.45
4-Dec-06 4001 0.37 332.5 -1.80
5-Dec-06 4015.75 0.00 326.5 -3.37
6-Dec-06 4015.95 -0.01 315.5 -1.43
7-Dec-06 4015.35 -1.33 311 0.48
8-Dec-06 3962 -2.84 312.5 -2.40
11-Dec-06 3849.5 -3.44 305 -6.39
12-Dec-06 3716.9 1.30 285.5 3.50
13-Dec-06 3765.2 2.07 295.5 4.23
14-Dec-06 3843.05 1.19 308 0.81
15-Dec-06 3888.65 1.03 310.5 -0.97
18-Dec-06 3928.75 -2.46 307.5 -1.46
19-Dec-06 3832 -0.43 303 1.32
20-Dec-06 3815.55 0.47 307 0.65
21-Dec-06 3833.5 0.98 309 -1.78
22-Dec-06 3871.15 1.79 303.5 0.66
26-Dec-06 3940.5 0.86 305.5 -0.33
27-Dec-06 3974.25 -0.09 304.5 -0.49
28-Dec-06 3970.55 -0.10 303 0.17
29-Dec-06 3966.4 1.03 303.5 1.48
2-Jan-07 4007.4 0.42 308 -0.32
3-Jan-07 4024.05 -0.88 307 -0.49
4-Jan-07 3988.8 -0.14 305.5 5.73
5-Jan-07 3983.4 -1.26 323 1.55
8-Jan-07 3933.4 -0.56 328 0.61
9-Jan-07 3911.4 -1.56 330 -3.48
10-Jan-07 3850.3 2.39 318.5 -0.31
11-Jan-07 3942.25 2.80 317.5 -2.83
12-Jan-07 4052.45 0.64 308.5 0.65
15-Jan-07 4078.4 0.05 310.5 2.42
16-Jan-07 4080.5 -0.10 318 2.20
17-Jan-07 4076.45 0.80 325 -4.62
18-Jan-07 4109.05 -0.46 310 1.29
19-Jan-07 4090.15 0.30 314 1.27
22-Jan-07 4102.45 -0.89 318 0.16
23-Jan-07 4066.1 0.59 318.5 5.02
24-Jan-07 4089.9 1.41 334.5 1.35
25-Jan-07 4147.7 -0.56 339 -2.36
29-Jan-07 4124.45 -1.01 331 -1.96
31-Jan-07 4082.7 1.33 324.5 -0.31
1-Feb-07 4137.2 1.12 323.5 0.00
2-Feb-07 4183.5 0.76 323.5 1.08
5-Feb-07 4215.35 -0.46 327 3.52
6-Feb-07 4195.9 0.68 338.5 9.01
7-Feb-07 4224.25 -0.02 369 -1.08
8-Feb-07 4223.4 -0.85 365 -0.68
9-Feb-07 4187.4 -3.08 362.5 -6.62
12-Feb-07 4058.3 338.5
Average(daily) 0.17 0.20
Average(yearly) 62.48 72.41
 Source: www.nseindia.com
* Share prices are adjusted after 30/12/2005 for split.

Return for period 20 April 2005 - 12 Feb 2007 (Rm) 62.48

Risk Free Rate(Rf) 10

Beta(β) 1.10

Cost Of Equity = Rf + ( Rm - Rf )* β 67.73

Computation Of Weighted Average Cost

Source Amount(crore) Proportion After Tax Cost(%) Weighted Cost(%)
Equity 8.42 4.04 67.28 2.72
Reserves 92.29 44.29 67.28 29.80
Debt 107.66 51.67 5.19 2.68
Total 208.37 100.00 WACC 35.20
 30.7
30.75
30.3
30.1
29.75
29.35
28.5
28
26.7
27.1
26.85
26
25.3
30.4
28.9
30.25
31
29.25
27.95
26.7
26.25
24.35
24.7
25.4
24.95
26.55
26.3
26.25
26.1
25.85
25.6
25.8
25.1
25.05
24.8
24.95
25.55
26.45
27.55
28.9
28.3
28.6
29.1
30.05
29.5
28.75
28.35
28.45
28.3
28
27.65
28
30.1
29.85
28.3
28.3
28
28.1
27.85
28
33.6
34.15
34.05
33.25
32.8
31.45
30.7
29.35
29
29.35
35.25
39.45
37.85
 36.9
40.15
39.2
39.65
38.55
38.3
39.7
38.9
39.3
37.75
37.45
37.75
37.25
37.75
37.05
37.2
34.85
34.25
35.4
29.5
30.65
27.9
30.65
30.45
29.65
29.7
35.65
35.8
33.2
33.25
32
31.55
29.6
27.2
23.55
26
25.95
23.9
23.15
24.9
25.1
25
25.25
26.7
29.65
30.85
30.8
28.5
28.05
28.45
27.95
28.8
29.75
29.4
29.25
28.75
28.2
27.75
27.35
27.65
27.65
28.5
26.85
26.25
25.3
25.4
24.85
24.7
24.75
25.75
25.5
25.65
26.1
25.9
26.3
28.15
27.15
27.75
27.7
27.9
27.45
27.95
29.4
30.2
29.65
29.3
29.5
29.4
29.1
29
29.45
29.45
29.6
30.15
30.45
30
29.55
29.75
29.55
29.9
32.35
31.05
31.45
31.8
 31.5
31
31.65
32.9
37.35
34.9
35.5
35
33.65
35.05
34.6
35.05
34.75
34.1
34.7
36.2
37.6
37.45
36.15
36.05
35.6
35.5
36
35.75
34.95
35.6
35.65
35.5
35
34.25
33.95
33.3
32.3
33.3
33.2
32.55
32.55
31.9
31.85
31.8
31.55
31.45
30.6
30.35
29.6
30.55
31
30.7
30.1
31.8
31.05
30.45
 31
30.9
33.1
33.25
32.65
31.55
31.1
31.25
30.5
28.55
29.55
30.8
31.05
30.75
30.3
30.7
30.9
30.35
30.55
30.45
30.3
30.35
30.8
30.7
30.55
32.3
32.8
33
31.85
31.75
30.85
31.05
31.8
32.5
31
31.4
31.8
31.85
33.45
33.9
33.1
32.45
32.35
32.35
32.7
33.85
36.9
36.5
36.25
33.85
 COST OF DEBT

Table - Total Debt

Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006
Gabriel India Ltd. 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
Bank borrowings 20.2 31.26 44.01 68.46 62.56 92.31
Short term bank borrowings 20.2 31.26 19.67 20.59 27.45 69.85
Long term bank borrowings 0 0 24.34 47.87 35.11 22.46
Financial institutional borrowings 30.68 24 0 0 0 0
Govt. / sales tax deferral borrowings 11.49 0 0 0 0 0
Debentures / bonds 43.86 31.46 17.26 0 0 0
Fixed deposits 22.64 22.98 19.47 13.24 3.81 0.16
Foreign borrowings 0 0 0 0 12.14 0
Borrowings from corporate bodies 0 0 0 1 0 0
Group / associate cos. 0 0 0 0 0 0
Borrowings from promoters / directors 0 0 0 0 0 0
Commercial paper 0 0 0 0 0 0
Other borrowings 8.24 18.5 24.21 17.63 14.7 15.19

Total Debt 137.11 128.2 104.95 100.33 93.21 107.66

Interest 19.73 17.86 13.71 8.80 7.33 8.60

Since cost of short term debt and long term debt is not given, the after tax weighted average cost of
capital is calculated as follows:

Weighted average cost of capital = Interest / ( Long term debt + Short term debt)
= 8.60 / (107.66)
= .0798
= 7.98%

After Tax Weighted average cost of capital = Interest Rate ( 1 - T )

= 0.0798 ( 1 - 0.35 )
= .0519
= 5.19%
debt)
 COST OF EQUITY BY DIVIDEND GROWTH MODEL
ke = (DIV1/P0) + g

Estimation of growth rate

(1) Internal Growth

g = Retention Ratio * ROE

Year DPS EPS BV MV PAT NW ROE (%) DY (%) Retention(%)

2001 2.73 6.36 125.88 27.50 4.57 90.41 5.05 9.93 57.08
2002 2.98 5.51 105.73 34.35 3.96 75.94 5.21 8.68 45.92
2003 5.6 16.32 102.32 68.55 11.72 73.49 15.95 8.17 65.69
2004 6.77 23.22 118.96 136.95 16.68 85.44 19.52 4.94 70.84
2005 7.96 24.91 135.91 185.08 17.89 97.61 18.33 4.30 68.04
2006 7.99 12.31 140.22 338.50 8.84 100.71 8.78 2.36 35.09
Average 5.67 14.77 121.50 131.82 10.61 87.27 12.14 6.40 57.11

Since in year 2006, there is decline in the PAT and hence EPS. Therefore to calculate growth the average
values of last 6 years are consifered.

Therefore, g = 0.1214 * 0.5711

= 0.0693 or 6.93%

(2) Past Average Growth

Year DPS gDPS 1 + gDPS

2001 2.73
2002 2.98 0.09 1.09
2003 5.6 0.88 1.88
2004 6.77 0.21 1.21
2005 7.96 0.18 1.18
2006 7.99 0.0038 1.00

Arithmetic Average = (∑ gDPS) / n

= 0.2718 or 27.18%

Geometric Mean = ∑( 1 + g n) - 1
= (DPSn/DPS0)1/n - 1
= 0.2395 or 23.95%

ESTIMATE OF GROWTH RATE and COST OF EQUITY

Method Growth Rate (%) Cost of equity (%) = ( DIV (1 + g ) / P0 ) + g

Internal growth 6.93 13.77
Arithmetic Average 27.18 30.18
Geometric mean 23.95 26.87

Computation Of Weighted Average Cost 0f Capital

Source Amount (crore) Proportion After Tax Cost(%) Weighted Cost(%)
Equity 8.42 4.04 26.87 1.09
Reserves 92.29 44.29 26.87 11.90
Debt 107.66 51.67 5.19 2.68
Total 208.37 100.00 WACC 15.67
etention(%)