sun microsystems case
TRANSCRIPT
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 1/30
Rev. Mar. 20, 2013
This spreadsheet was prepared by Elena Loutskina, Assistant ro!essor o! "usiness Ad#inistration. $opyri%ht & 2010 by the 'niversity o! (ir%inia )arderi%hts reserved. For customer service inquiries, send an e-mail tosales-dardenbusinesspublishin%.+o#. No part of this publication may be reproduced, stoor transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden chool F
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 2/30
SUN
T $o
#arket d
Stock Shares Market
Price Out CapTicker ($) (MM) ($MM)
Primarily ar!"are
Advan+ed Mi+ro )evi+es AM) 3.56 60/ 2,167
Apple AAL 123.82 77/ 10/,13
)ell )ELL 11.06 1,/88 21,505
EM$ EM$ 12.71 2,081 26,182
9ewlett:a+kard 9; 36.30 2,816 7,07
ntel <T$ 15.60 2,562 3/,/6
nternational "usiness Ma+hines "M 101.2 1,383 136,052
<etApp <TA 1.5/ 330 5,707*un Mi+rosyste#s =A(A 6.6/ 3/ 8,/81
Primarily So#t"are
Adobe *yste#s A)"E 28.0 528 12,/88
Mi+roso!t M*T 1/.20 7,7/6 10,/5
<ovell <>(L 3./8 383 1,353
>ra+le >R$L 1/.06 5,086 /6,170
Red 9at R9T 17.32 1/0 3,872
)ata sour+es? @ahoo inan+e, Moodys, "loo#ber%, and +o#pany !ilin%s.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 3/30
Ehibit /
ICROSYSTEMS
panies inan+ial )ata
ata as o! April 1, 200/4
% Cash & 'TM 'TM 'TM
et 'e*ere! o+! I+*estme+ts Sales EIT EIT,($MM) eta Rati+- ($MM) ($MM) ($MM) ($MM)
8,/77 2.1/ " /33 5,707 1,/554 324
: 1.11 : 28,8/0 3,0/6 ,/78 7,3/
2,011 1.12 A2 /,586 61,101 3,1/0 3,/5/
3,808 1.3/ : 6,886 18,76 1,56/ 2,626
20,857 1.25 A2 10,180 117,6/ 10,358 18,15
1,/77 1.20 A1 7,780 3,576 7,/58 13,50
33,/25 0./3 A1 12,/0 103,630 16,15 22,165
1,265 1.70 : 2,608 3,868 116 2761,25 1.3 "a1 3,061 13,837 2,2314 1,54
350 1.32 : 2,017 3,86 /61 1,231
2,000 0.// Aaa 31,88 61,/71 22,127 28,875
122 1.50 "1 1,06 /80 10 55
11,237 1.2 A2 12,628 23,630 7,806 10,2/1
: 1.20 "" 663 627 70 11/
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 4/30
'TM
*ales MultipleEar+i+-s($MM) E"T Multiple
3,0/74 7.54 1.0 3.174
5,27 /.7 2.30 10.6
2,87 3.5 0.23 8.37
1,386 7.7 1.55 18.2
7,050 6./ 0.73 /.8
5,2/2 2.8 0.77 3.0
12,338 .1 1.52 /.80
101 15.6 1.2/ 37.3nBa 1.74 0.23 1.814
70/ /.2 3.28 11.8
1,232 5.7 2.27 6.3/
154 .8 0.83 81.08
5,3/ /.2 8.01 11.27
75 23. 8.8/ 35.08
,*era-e ./0 1/2 13/4
E"T)AM'LTLE
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 5/30
Ehibit 10
SUN MICROSYSTEMS
Relevant *e+urity @ields, April 200/
Corporate o+! Yiel!s
AAA 5.50CAA 5.C
AD 6.2C
A 6.35C
A: 6.50C
"""D .58C
""" .62C
""": 7.68C
""D 11.82C
"" 11.8/C
"": 11.0C"D 13.27C
" 18.0C
": 15.86C
U/S/ Treasury Yiel!s
170:)ay 0.38C
1:@ear 0.58C
3:@ear 1.22C
5:@ear 1.1C10:@ear 2.72C
30:@ear 3.66C
)ata sour+es? Mer%ent "ond Re+ord, '.*. Treasury, and bbotson Asso+iates.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 6/30
Ehibit 11
SUN MICROSYSTEMS
*un Mi+rosyste#s 9istori+al and roe+ted "alan+e *heet
in #illions o! '.*. dollars4
5is
888,ssets
$urrent Assets
3,620
Marketable )ebt *e+urities 2,322
<et Re+eivables 2,/68
nventory 528
200
>ther $urrent Assets 1,057
Total $urrent Assets 10,677
roperty, lant, F EGuip#ent, <et 1,508
Hoodwill 2,518
ntan%ible Assets 633>ther <on+urrent Assets 8//
Total ,ssets 129:4:
'iailities & E;uity
$urrent Liabilities
A++ounts ayable n+ludin% A++rued ayroll 2,222
*hortB$urrent Lon%:Ter# )ebt 1
2,08
>ther $urrent Liabilities n+ludin% Iarranty Reserve 1,172
Total $urrent Liabilities 5,851
Lon%:Ter# )ebt 1,26865/
1,275
Total Liabilities 7,65/
*to+kholders EGuity
$o##on *to+k 6,/7
Treasury *to+k 3114
Retained Earnin%s 17/
>ther *to+kholders EGuity 318
Total *to+kholders EGuity ,1/
Total 'iailities & E;uity 129:4:
)ata sour+es? $o#pany !ilin%s and +ase writer esti#ates.
24 )e!erred taes and related a++ounts are not epe+ted to vary with sales or +ontinue to a++u#ulate as a +o#pan
$ash14
)e!erred repaid Taes24
)e!erred Taes24
)e!erred Lon%:Ter# $har%es24
>ther <on+urrent Liabilities34
14 *un Mi+rosyste#s4 lon%:ter# strate%y is to #aintain a #ini#u# a#ount o! +ash and +ash eGuivalents in subsinvest the re#ainin% a#ount o! our +ash in interest:bearin% and hi%hly liGuid +ash eGuivalents and #arketable debt
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 7/30
34 n+ludes de!erred settle#ent in+o#e !ro# Mi+roso!t as o! =une 30, 200/, 2007, 200, and 2006, lon%:ter# ta l200, and 2006 and lon%:ter# restru+turin% liabilities.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 8/30
cal Year6E+! 7u+e 40
888 300<E
2,22 1,76
1,037 1,175
3,01/ 2,257
670 566
216 177
1,217 //5
7,883 ,067
1,611 1,616
3,215 1,83
565 26/506 536
1=94=0 119343
2,121 1,600
: 558
2,236 2,381
1,311 1,126
5,667 5,621
1,265 6/5673 635
1,136 /6
7,52 ,/2
,3/1 ,572
2,264 2,56/4
830 2,0554
8/3 38
5,577 3,305
1=94=0 119343
%rowth.
idiaries !or operational purposes and tose+urities.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 9/30
iabilities as o! =une 30, 200/, 2007,
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 10/30
Ehibit 12
SUN MICROSYSTEMS
>ra+le 9istori+al and roe+ted "alan+e *heet
in #illions o! '.*. dollars4
5iscal Year6E+! May 41300. 300: 300<E
,ssets
$urrent Assets
$ash F $ash EGuivalents ,020 11,083 12,628
<et Re+eivables 8,57/ 5,// 8,830
nventory : : :
>ther $urrent Assets 1,28 1,261 1,52
Total $urrent Assets 12,773 17,103 17,571
roperty, lant, F EGuip#ent, <et 1,603 1,677 1,/22
Hoodwill 13,8/ 1,//1 17,782
ntan%ible Assets 5,/68 7,3/5 ,26/>ther <on+urrent Assets 683 1,0/1 702
Total ,ssets 4=92.3 =.93>: =.9=1>
'iailities & E;uity
$urrent Liabilities
A++ounts ayable 315 373 21
*hortB$urrent Lon%:Ter# )ebt 1,357 1,001 1,001
>ther $urrent Liabilities ,18 7,685 ,7
Total $urrent Liabilities /,37 10,02/ /,18/
Lon%:Ter# )ebt 6,235 10,235 /,23
)e!erred Lon%:Ter# $har%es 1,121 1,217 870
>ther <on+urrent Liabilities /10 2,61 3,860
Total Liabilities 1,653 28,283 22,326
*to+kholders EGuity
$o##on *to+k 10,2/3 12,886 12,/70
Treasury *to+k : : :
Retained Earnin%s 6,223 /,/61 11,7/8
>ther *to+kholders EGuity 803 617 216
Total *to+kholders EGuity 16,/1/ 23,025 25,0/0
Total 'iailities & E;uity 4=92.3 =.93>: =.9=1>
)ata sour+es? $o#pany !ilin%s and +ase writer esti#ates.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 11/30
Ehibit 13
SUN MICROSYSTEMS
>ra+le 9istori+al and roe+ted n+o#e *tate#ent
in #illions o! '.*. dollars4
5iscal Year6E+! May 41300. 300: 300<E
*o!tware Revenues 18,211 1,783 17,7
*ervi+es Revenues 3,75 8,57 8,35
<et Revenue 1,//6 22,830 23,252
*ellin%, Heneral, F Ad#inistrative 7,/0 10,867 10,21
Resear+h F )evelop#ent 2,1/5 2,81 2,6
A#ortiJation o! ntan%ible Assets 77 1,212 1,13
>ther >peratin% Epense 15/ 165 238
Total >peratin% Epense 12,022 18,576 18,/31
>peratin% n+o#e 5,/8 ,788 7,321
n+o#e Ta on >perations 1,0/ 2,316 2,370
<et >peratin% ro!it A!ter Ta 8,265 5,527 5,/81
E!!e+tive $orporate Ta Rate 27.6C 2/.5C 27.6C
)ata sour+es? $o#pany !ilin%s and +ase writer esti#ates.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 12/30
SUN
*un Mi+rosyste#s 9ist
in #i
300. 888
<et Revenue 13,73 13,770
$ost o! *ales ,607 ,825
Hross Mar%in 6,265 6,855
*ellin%, Heneral, F Ad#inistrative 3,751 3,/55
Resear+h F )evelop#ent 2,007 1,738
#pair#ent o! Hoodwill : KKK
>ther >peratin% Epense / 2/8
Total >peratin% Epense 5,/56 6,073
>peratin% n+o#e 30/ 32
)epre+iation F A#ortiJation 51 86
as ! of "rior #ear ""$% 38.8C 2/.5C
<et FE 1,611 1,616
as C o! *ales 11.6C 11.6C
)ata sour+es? $o#pany !ilin%s and +ase writer esti#ates.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 13/30
Ehibit 18
MICROSYSTEMS
ori+al and roe+ted n+o#e *tate#ent
lions o! '.*. dollars4
5iscal Year6E+! 7u+e 40300<E 3010E 3011E 3013E 3014E
11,88/ 12,665 13,08 13,526 13,775
6,17 ,675 ,573 ,35 ,77/
8,31 8,/70 5,868 5,/1 5,//6
3,861
1,687
1,860
3/7
6,/6 8,73/ 8,//2 5,121 5,28/
2,2364 181 82 60 8
88 536 856 80 87
2/.3C 30.0C 30.0C 30.0C 30.0C
1,77 1,520 1,566 1,623 1,666
15.6C 12.0C 12.0C 12.0C 12.0C
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 14/30
301=E
18,283
7,05
6,167
5,32
/6
500
30.0C
1,0/
12.0C
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 15/30
SUN
in #i
300. 888
<et Revenue 13,73 13,770$ost o! *ales ,607 ,825
Hross Mar%in 6,265 6,855
*ellin%, Heneral, F Ad#inistrative 3,751 3,/55
Resear+h F )evelop#ent 2,007 1,738
#pair#ent o! Hoodwill : KKK
>ther >peratin% Epense / 2/8
Total >peratin% Epense 5,/56 6,073
Operati+- I+come 40< 4.3
EIT?(16T) 301 3=3
E 1,611 1,616Net PPE 2
<I$ 1,182 1,875
as ! of ales
Net N@C 4=4
epreciatio+ & ,mortiAatio+ 21. =.>
as ! of "rior #ear ""$% 38.8C 2/.5C
<et FE 1,611 1,616
as C o! *ales 11.6C 11.6C
@ithout Sy+er-y
5C5Termi+al %alue
E+terprise %alue
nterest
TaE"T:nterest4
E;uity Cash 5lo"
E;uity %alue o# 5irm
@ith Sy+er-y
<et Revenue 13,73 13,770
$ost o! *ales ,607 ,825
Hross Mar%in 6,265 6,855
*ellin%, Heneral, F Ad#inistrative 3,751 3,/55
Resear+h F )evelop#ent 2,007 1,738
#pair#ent o! Hoodwill : KKK
>ther >peratin% Epense / 2/8
Total >peratin% Epense 5,/56 6,073
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 16/30
$usto#er Attrition
nte%ration $har%es
n+rease in >peratin% n+o#e
Operati+- I+come
EIT?(16T)
5C5Termi+al %alue
E+terprise *alue
nterest
TaE"T:nterest4
E;uity Cash 5lo"
E;uity %alue o# 5irm
Sy+er-y E##ect
Usi+- Multiple
ndustry E"T #ultiple 12/31
ndustry E"T)A #ultiple 817
ndustry *ales Multiple 1/222
'sin% E"T Multiples !ro# ntel 37/5
'sin% E"T Multiples !ro# "M /7/
The +o#panies%ood idea to sti
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 17/30
Ehibit 18
MICROSYSTEMS
lions o! '.*. dollars4
5iscal Year6E+! 7u+e 40
300<E 3010E 3011E 3013E 3014E
11,88/ 12,665 13,08 13,526 13,7756,17 ,675 ,573 ,35 ,77/
8,31 8,/70 5,868 5,/1 5,//6
3,861
1,687
1,860
3/7
6,/6 8,73/ 8,//2 5,121 5,28/
(3934>) 1=1 =.3 >.0 .=.
(19=24) <3 40. =4> =:>
1,77 1,520 1,566 1,623 1,6661.3 (3>:) => 2. =4
1,0/3 1,20/ 1,286 1,2/1 1,326
10.6C 3.0C 3.C 2.C
(4<3) 11> 4> => 4=
=.= 24> =2> =.0 =:.
2/.3C 30.0C 30.0C 30.0C 30.0C
1,77 1,520 1,566 1,623 1,666
15.6C 12.0C 12.0C 12.0C 12.0C
(.2<) .:0 >:0 :03 :<2119><4
<93>< Share Price 12.54
182.68 /.3 /.3 /.3 /.3
:732.52 21.5 13.82 206.2 233.6
(:23) 1.= >3< .20 :==
.9442
11,88/ 12,665 13,08 13,526 13,775
6,17 ,675 ,573 ,35 ,77/
8,31 8,/70 5,868 5,/1 5,//6
3,861 2,287 2,31/ 2,3/ 2,837
1,687 1,585 1,5/8 1,635 1,66
1,860
3/7 183 187 152 155
6,/6 3,/36 8,061 8,166 8,20
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 18/30
85
50 350
/00 /00
(3934>) 3=< 19024 19>32 19.3>
(19=24) 1>3 >:2 1902> 19133
(.2<) :20 1902: 19=34 192431<.<=
129... Share Price 21.35
188.86 188.86 182.68 /.3 /.3
:733.16 36.8 317.6/ 581.06 56.3
(:24) 303 <>2 194.1 19=:0
14930<
>920:
iven in ehibit / are bi%%er than *un Mi+rosyste# and hen+e we #ay end up over valuin%k to industry avera%es.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 19/30
TaB Rate 35C
301=E Sta## EBpe+se S&, R&
18,283 25C 32C : 7,05 22C 2C :
6,167 60C 8C 32C
Su+ MicroSystem 300<
)ebt "(4 125 Id 20C
*hares 3/
5,32 *hare ri+e 6.6/
.<> EGuityM(4 8/88 Ie 70C
21. "eta Levered4 1.3 Hiven Ehibit /
1,0/ R! 3.66C 30 year bond Ehibit 10 =4 kd 11.82C Ratin% : "a1 Ehibit 10
1,360 Rp 5C
2.6C ke 12.31C
4= IA$$ 11.32C
200
30.0C
1,0/ Oracle D301=
12.0C )ebt "(4 11237 Id 10C
*hares 5086
<=0 *hare ri+e 1/.06EGuityM(4 /61 Ie /0C
"eta Levered4 1.2 Hiven Ehibit /
/.3 R! 3.66C 30 year bond Ehibit 10
250.72 kd 6.35C Ratin% : A2 Ehibit 10
::< Rp 5C
ke 11.65C
'nlevered "eta 1.87
<ew "eta Levered 1.60
IA$$ 10.76C
18,283 Hrowth Rate 2.72C
7,05
6,167
2,8/5
1,15
15/
8,30
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 20/30
/00
19.<:
191><
192<1
/.3
601.55
192=0
he !ir#. 9en+e it #i%ht be a
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 21/30
30116301=
)ebt 03 Id 12C
EGuity 8/88 Ie 77C
'nlevered "eta 1.87
<ew "eta 1.62 <ew ke 11.C
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 22/30
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 23/30
Ehibit 1
SUN MICROS
in #illions o! '.
888 888 300<E
<et Revenue 13,73 13,770 11,88/$ost o! *ales ,607 ,825 6,17
Hross Mar%in 6,265 6,855 8,31
*ellin%, Heneral, F Ad#inistrative 3,751 3,/55 3,861
Resear+h F )evelop#ent 2,007 1,738 1,687
#pair#ent o! Hoodwill : : 1,860
>ther >peratin% Epense / 2/8 3/7
Total >peratin% Epense 5,/56 6,073 6,/6
Operati+- I+come 40< 4.3 (3934>)
EIT?(16T) 301 3=3 (19=24)
E 1,611 1,616 1,77Net PPE 2 1.3
<I$ 1,182 1,875 1,0/3
as ! of ales
Net N@C 4=4 (4<3)
epreciatio+ & ,mortiAatio+ 21. =.> =.=
as ! of "rior #ear ""$% 38.8C 2/.5C 2/.3C
<et FE 1,611 1,616 1,77
as C o! *ales 11.6C 11.6C 15.6C
@ithout Sy+er-y
5C5 (19344)Termi+al %alue
E+terprise %alue 4934<
nterest 182.68
TaE"T:nterest4 :732.52
E;uity Cash 5lo" (1943>)
E;uity %alue o# 5irm 19.=1
@ith Sy+er-y
<et Revenue 13,73 13,770 11,88/
$ost o! *ales ,607 ,825 6,17
Hross Mar%in 6,265 6,855 8,31
*ellin%, Heneral, F Ad#inistrative 3,751 3,/55 3,861
Resear+h F )evelop#ent 2,007 1,738 1,687
#pair#ent o! Hoodwill : : 1,860
>ther >peratin% Epense / 2/8 3/7
Total >peratin% Epense 5,/56 6,073 6,/6
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 24/30
$usto#er Attrition
nte%ration $har%es
n+rease in >peratin% n+o#e
Operati+- I+come (3934>)
EIT?(16T) (19=24)
5C5 (19344)Termi+al %alue
E+terprise *alue <9.=.
nterest 188.86
TaE"T:nterest4 :733.16
E;uity Cash 5lo" (1943.)
E;uity %alue o# 5irm .9>12
Sy+er-y E##ect >920:
Usi+- Multiple
ndustry E"T #ultiple 12/31
ndustry E"T)A #ultiple 817
ndustry *ales Multiple 1/222
'sin% E"T Multiples !ro# ntel 37/5
'sin% E"T Multiples !ro# "M /7/
The +o#panies %iven in ehibit / be a %ood idea to sti+k to industry
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 25/30
8
STEMS
. dollars4
5iscal Year6E+! 7u+e 40
3010E 3011E 3013E 3014E 301=E
12,665 13,08 13,526 13,775 18,283,675 ,573 ,35 ,77/ 7,05
8,/70 5,868 5,/1 5,//6 6,167
8,73/ 8,//2 5,121 5,28/ 5,32
1=1 =.3 >.0 .=. .<>
<3 40. =4> =:> 21.
1,520 1,566 1,623 1,666 1,0/(3>:) => 2. =4 =4
1,20/ 1,286 1,2/1 1,326 1,360
10.6C 3.0C 3.C 2.C 2.6C
11> 4> => 4= 4=
24> =2> =.0 =:. 200
30.0C 30.0C 30.0C 30.0C 30.0C
1,520 1,566 1,623 1,666 1,0/
12.0C 12.0C 12.0C 12.0C 12.0C
3=4 33= 443 =0: ==029=.>
Share Price 4.38
/.3 /.3 /.3 /.3 /.3
21.5 13.82 206.2 233.6 250.72
(4>3) 1.4 3:1 42. 4:<
12,665 13,08 13,526 13,775 18,283
,675 ,573 ,35 ,77/ 7,05
8,/70 5,868 5,/1 5,//6 6,167
2,287 2,31/ 2,3/ 2,837 2,8/5
1,585 1,5/8 1,635 1,66 1,15
183 187 152 155 15/
3,/36 8,061 8,166 8,20 8,30
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 26/30
85
50 350
/00 /00 /00
3=< 19024 19>32 19.3> 19.<:
1>3 >:2 1902> 19133 191><
414 >03 <24 190=2 190<3142..
Share Price 13.19
188.86 182.68 /.3 /.3 /.3
36.8 317.6/ 581.06 56.3 601.55
(442) 210 <03 <<4 190=0
re bi%%er than *un Mi+rosyste# and hen+e we #ay end up over valuin% the !ir#. 9en+e it #i%htavera%es.
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 27/30
Ta Rate 35C
Sta## EBpe+se S&, R&
25C 32C :22C 2C :
60C 8C 32C
Su+ MicroSystem 300< 30116301=
)ebt "(4 125 Id 20C )ebt 03 Id
*hares 3/
*hare ri+e 6.6/
EGuityM(4 8/88 Ie 70C EGuity 8/88 Ie
"eta Levered4 1.3 Hiven Ehibit / 'nlevered "eta
R! 3.66C 30 year bond Ehibit 10 <ew "etakd 11.82C Ratin% : "a1 Ehibit 10 <ew ke
Rp 5C
ke 12.31C
IA$$ 11.32C
Oracle D301=
)ebt "(4 11237 Id 10C
*hares 5086
*hare ri+e 1/.06EGuityM(4 /61 Ie /0C
"eta Levered4 1.2 Hiven Ehibit /
R! 3.66C 30 year bond Ehibit 10
kd 6.35C Ratin% : A2 Ehibit 10
Rp 5C
ke 11.65C
'nlevered "eta 1.87
<ew "eta Levered 1.60
IA$$ 10.76C
Hrowth Rate 2.72C
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 28/30
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 29/30
12C
77C
1.87
1.6211.C
8/9/2019 Sun Microsystems Case
http://slidepdf.com/reader/full/sun-microsystems-case 30/30