FY67 FY68 FY69 FY70 FY71 FY72 FY73

0 1 2 3 4 5 6
Investment $ (160.00) $ (40.00)
$ (37.76)
62.04 58.77 55.51 52.24 48.98 60.50
Depreciation (Pkg & B.M) $ 19.00 $ 18.00 $ 17.00 $ 16.00 $ 15.00 $ 13.00
Investment $ (453.00)
Dep. $ 43.04 $ 40.77 $ 38.51 $ 36.24 $ 33.98 $ 29.45
$ (112.46) $ (150.00)
Dep. $ 14.25
$ (29.99) $ (40.00)
Dep. $ 3.80
(Dep. Rate) 9.50% 9.00% 8.50% 8.00% 7.50% 6.50%
Net Sales 2112 2304 2496 2668 2880 2880
COGS 1100 1200 1300 1400 1500 1500
(less) Advertising Expense 1100 1050 1000 900 700 700
Startup Cost 15 0 0 0 0 0
Test Market Expense 360 0 0 0 0
Overhead Expenses 0 0 0 0 81.71875 81.71875
Adjustment Erosion 180 200 210 220 230 230
Total Expense 2755 2450 2510 2520 2511.7188 2511.7188
Total Depreciation $ 62.04 $ 58.77 $ 55.51 $ 52.24 $ 48.98 $ 60.50
EBIT (705.04) (204.77) (69.51) 95.76 319.31 307.79
Tax (366.62) (106.48) (36.14) 49.80 166.04 160.05
EAT (338.42) (98.29) (33.36) 45.96 153.27 147.74
NOCF (EAT + T.Dep.+Erosion)) (96.38) 160.48 232.14 318.20 432.24 438.23
Net Working Capital $ (329) $ 55 $ 3 $ 1 $ 29 $ (1)
PV of CF $ 149.04
PV of OCF $ 2,320.12 $ (90.99) $ 143.02 $ 195.30 $ 252.71 $ 324.06 $ 310.16
PV of Working Capital $ (102.97) $ (310.58) $ 49.01 $ 2.52 $ 0.79 $ 21.74 $ (0.71)
$ 1,572.98

$ (793.21) $ (96.38) $ 160.48 $ 232.14 $ 327.80 $ 432.24 $ 438.23

27%

RRR 5.93%
 FY74 FY75 FY76 FY77 C.F
7 8 9 10 10

56.28 52.07 47.85 43.64

$ 12.00 $ 11.00 $ 10.00 $ 9.00 $ 20.00

$ 27.18 $ 24.92 $ 22.65 $ 20.39 $ 135.90

$ 13.50 $ 12.75 $ 12.00 $ 11.25 $ 86.25

$ 3.60 $ 3.40 $ 3.20 $ 3.00 $ 23.00

6.00% 5.50% 5.00% 4.50%
3072 3072 3264 3264
1600 1600 1700 1700
730 730 750 750
0 0 0 0
0 0 0 0
87.166667 87.166667 92.614583
92.6145833333 $ 523.00 Total Overhead
240 240 250 250
2657.1667 2657.1667 2792.6146
2792.61458333
$ 56.28 $ 52.07 $ 47.85 $ 43.64
358.55 362.77 423.54 427.75
186.45 188.64 220.24 222.43
172.11 174.13 203.30 205.32
468.39 466.19 501.15 498.96
$ (13) $ - $ $(12) 267
$ 265.15
$ 312.95 $ 294.05 $ 298.40 $ 280.46
$ (8.69) $ - $ (7.15) $ 150.08

$ 468.39 $ 466.19 $ 501.15 $ 764.11

 FY67 FY68 FY69 FY70 FY71 FY72 FY73
0 1 2 3 4 5 6
Investment $ (160.00) $ (40.00)
Depreciation (Pkg & B.M) $ 19.00 $ 18.00 $ 17.00 $ 16.00 $ 15.00 $ 13.00
Investment $ (453.00) $ 409.97 $ 369.20 $ 330.69 $ 294.45 $ 260.48 $ 231.03
$ 43.04 $ 83.81 $ 122.31 $ 158.55 $ 192.53 $ 221.97
Dep. $ 43.04 $ 40.77 $ 38.51 $ 36.24 $ 33.98 $ 29.45
$ (111.56) $ (150.00) $ 135.75
$ 14.25
Dep. $ 14.25
$ (29.75) $ (40.00) $ 36.20
$ 3.80
Dep. $ 3.80
(Dep. Rate) 9.50% 9.00% 8.50% 8.00% 7.50% 6.50%
Net Sales 2112 2304 2496 2688 2880 2880
COGS 1100 1200 1300 1400 1500 1500
(less) Advertising Expense 1100 1050 1000 900 700 700
Startup Cost 15 0 0 0 0 0
Test Market Expense 360 0 0 0 0
Overhead Expenses 0 0 0 0 81.71875 81.71875
Adjustment Erosion 180 200 210 220 230 230
Total Expense 2755 2450 2510 2520 2511.7188 2511.7188
Total Depreciation $ 62.04 $ 58.77 $ 55.51 $ 52.24 $ 48.98 $ 60.50
EBIT $ (705.04) $ (204.77) $ (69.51) $ 115.76 $ 319.31 $ 307.79
Tax $ (366.62) $ (106.48) $ (36.14) $ 60.20 $ 166.04 $ 160.05
EAT $ (338.42) $ (98.29) $ (33.36) $ 55.56 $ 153.27 $ 147.74
NOCF (EAT + T.Dep.+Erosion)) $ (96.38) $ 160.48 $ 232.14 $ 327.80 $ 432.24 $ 438.23
Net Working Capital $ (329.00) $ 55.00 $ 3.00 $ 1.00 $ 29.00 $ (1.00)
PV of CF $ 146.67
PV of OCF $ 2,303.30 $ (90.84) $ 142.56 $ 194.36 $ 258.67 $ 321.48 $ 307.19
PV of Working Capital $ (252.69) $ (310.08) $ 48.86 $ 2.51 $ 0.79 $ 21.57 $ (0.70)
$ 1,442.96

RRR 6.10%
 FY74 FY75 FY76 FY77 Capital Employed C.F
7 8 9 10 10
$ 113.00
$ 12.00 $ 11.00 $ 10.00 $ 9.00 $ 20.00
$ 203.85 $ 178.94 $ 156.29 $ 135.90 $ 257.08
$ 249.15 $ 274.07 $ 296.72 $ 317.10
$ 27.18 $ 24.92 $ 22.65 $ 20.39 $ 135.90
$ 122.25 $ 109.50 $ 97.50 $ 86.25 $ 110.25
$ 27.75 $ 40.50 $ 52.50 $ 63.75
$ 13.50 $ 12.75 $ 12.00 $ 11.25 $ 86.25
$ 32.60 $ 29.20 $ 26.00 $ 23.00 $ 29.40
$ 7.40 $ 10.80 $ 14.00 $ 17.00
$ 3.60 $ 3.40 $ 3.20 $ 3.00 $ 23.00
6.00% 5.50% 5.00% 4.50%
3072 3072 3264 3264
1600 1600 1700 1700
730 730 750 750
0 0 0 0
0 0 0 0
87.166667 87.166667 92.614583 92.6145833333 $ 523.00 Total Overhead
240 240 250 250
2657.1667 2657.1667 2792.6146 2792.61458333
$ 56.28 $ 52.07 $ 47.85 $ 43.64
$ 358.55 $ 362.77 $ 423.54 $ 427.75
$ 186.45 $ 188.64 $ 220.24 $ 222.43
$ 172.11 $ 174.13 $ 203.30 $ 205.32
$ 468.39 $ 466.19 $ 501.15 $ 498.96
$ (13.00) $ - $ (12.00) $ - $ 267.00
$ 265.15
$ 309.45 $ 290.30 $ 294.12 $ 276.00
$ (8.59) $ - $ (7.04) $ -
0.3079896907
Total Overhead
 S&P 500 Price % Change GFC Avg Stock Price % Change GFC Stock Price Low
1-Jan-68 95.04 -11.14% 31.875 42.75% 24
1-Jan-67 84.45 10.50% 45.5 36.95% 37.125
1-Jan-66 93.32 -7.72% 62.3125 41.52% 49.125
1-Jan-65 86.12 -11.23% 88.1875 -12.83% 68.625
1-Jan-64 76.45 -14.90% 76.875 9.35% 57.75
1-Jan-63 65.06 6.16% 84.0625 2.01% 77.625
1-Jan-62 69.07 -13.54% 85.75 -2.41% 78.25
1-Jan-61 59.72 -2.83% 83.6875 -12.92% 77.5
1-Jan-60 58.03 -4.15% 72.875 0.86% 62.75
1-Jan-59 55.62 73.5 65.25

Beta 0.3498529351
Rm 13.92%
Rf 2.21%
Re 6.31%
GFC Stock Price Low
39.75
53.875
75.5
107.75
96
90.5
93.25
89.875
83
81.75
 Annual Returns on Investments in

S&P 500 (includes Return on 10-year

Year 3-month T.Bill
dividends) T. Bond

1958 43.72% 1.78% -2.10%

1959 12.06% 3.26% -2.65%
1960 0.34% 3.05% 11.64%
1961 26.64% 2.27% 2.06%
1962 -8.81% 2.78% 5.69%
1963 22.61% 3.11% 1.68%
1964 16.42% 3.51% 3.73%
1965 12.40% 3.90% 0.72%
1966 -9.97% 4.84% 2.91%
1967 23.80% 4.33% -1.58%
13.92% 3.28% 2.21%
Rm Rf
Year Rd
1958 3.6
1959 4.12
1960 4.61
1961 4.32
1962 4.44
1963 4.21 0.099836
1964 4.39
1965 4.43
1966 4.74
1967 5.2
4.41% 6.31% 6.11
5.93%