Hi Team, 

I ran my own numbers this morning, and verified what you guys have  
sent out. I think we can use Mark's or Jeff's write-up as is. Just have 
one clarification re: Q2 - my?spreadsheet shows that if we increase ad 
expenses for five years only '94-'98 (as opposed to in perpetuity), 
then the stock price ends up being 22.73 v/s Mark's 22.20. I do get 
22.20 if?I also increase the 6th year ('99) expenses to 27% - perhaps
this was an oversight - can someone pls confirm? 

For Q5, merely changing terminal growth to 4%, and WACC to 10%
gets us to an $80 stock price.?But?4% in perpetuity is probably 
unrealistic?

Re: the last question, I agree with Mark's analysis - firms that 
have huge R&D cycles and patent protection over 17 years etc.
e.g. pharmas would be good candidates for foreacsting over a 
longer term horizon. 

Rest looks great - you guys are awesome!! 

-Anil 

? "Vavrek, Carolyn (US - San Francisco)" <cvavrek@deloitte.com> wrote: 


got your messages + attachments and mark's - WOW + THANKS!! 
also calc'd it all myself 
will review + compare + send around comments 
-cv 
Carolyn M. Vavrek 
Manager - Human Capital Advisory Services 
Deloitte & Touche 
50 Fremont Street 
San Francisco, CA? 94105 

phone: 415-783-5137 
fax: 415-783-8760 
e-mail: cvavrek@deloitte.com 


-----Original Message----- 
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com] 
Sent: Sunday, February 18, 2001 8:26 PM 
To: Mark Guinney 
Cc: asama@yahoo.com; cvavrek@deloitte.com; Jeff.Dasovich@enron.com; 
Jeff_Dasovich@enron.com 
Subject: Re: Answers 



Since it seems like folks may have only been sporadically receiving my 
emails, please let me know if you receive the memos and accompanying 
spreadsheets that I just sent.? Thanks. 

Best, 
Jeff 


This message (including any attachments) contains confidential information 
intended for a specific individual and purpose, and is protected by law.? If 
you are not the intended recipient, you should delete this message and are 
hereby notified that any disclosure, copying, or distribution of this 
message, or the taking of any action based on it, is strictly prohibited.



Do You Yahoo!?
- Get personalized email addresses from Yahoo! Mail Personal Address  - only 
$35  a year!