I like  the numbers too.? Anil - I got the same answer you did, but decided 
in the  write-up to only contemplate the ad campaign change in perpetuity, 
consistent  with Jeff's write-up.? I substituted Mark's answer to the last 
question for  Jeff's and added an attachment, hopefully showing the crux of 
our number  crunching.? Let me know if you think we should attach additional 
or  different details from the spreadsheets (especially for the third  
question).? Otherwise I think we are done with this  one.
-  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: Anil Sama  [mailto:asama@yahoo.com]
Sent: Monday, February 19, 2001 7:40  PM
To: Vavrek, Carolyn (US - San Francisco);  Jeff.Dasovich@enron.com; Mark 
Guinney
Cc: asama@yahoo.com;  Jeff_Dasovich@enron.com
Subject: RE: Answers



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 


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