I just remembered it as a 7 versus a 2.   You are right.
	
 -----Original Message-----
From: 	Tu, Denis  
Sent:	Friday, March 23, 2001 2:52 PM
To:	Hayslett, Rod
Subject:	Pre-Tax Return

Did I miss something?

60% Debt at 7.5%
40% Equity at 15%
Income Tax Rate at 38.5%

Pre-tax return:

=7.5% x 60% + (15% x 40%) / (100% - 38.5%)

=4.5% + 9.76%

=14.26%