Optimal capital Structur

EBIT
Interest
Operating Income
Non Operating Income
Income before tax and WPPF
Contribution to Welfare Fund
EBT
Tax
NI
No. Of Shares
EPS

Current Situation
107712285
11682763
96029522
723,411
96,752,933
4607283
92,145,650
25340054
66805596
59845632
1.1163

All Debt
134640356.3
15282763
119357593.3
723,411
120,081,004
4607283
115,473,721
40415802.44
75057919
59845632
1.2542

All Equity
134640356.3
11682763
122957593.3
723,411
123,681,004
4607283
119,073,721
41675802.44
77397919
60433867.29
1.2807

** Expansion plan of 20 million should be funded by all equity based on EPS

Optimal capital Structure

Current Situation
Total Debt
Total Equity
Cost of Equity (Ke)
Cost of Debt (Kd)
WE
WD

WACC

95542665
777765305
2.88%
12.23%
89.06%
10.94%
3.53%

All Debt
115542665
777765305
2.88%
13.23%
87.07%
12.93%
3.62%

All Equity
95542665
797765305
2.88%
12.23%
89.30%
10.70%
3.42%

** Expansion plan of 20 million should be funded by all equity based on WACC

mal capital Structure (EPS)

D:E (40:60)
134640356.3
13122763
121517593.3
723,411
122,241,004
4607283
117,633,721
41171802.44
76461919
60198573.18
1.2702

D:E (60:40)
D:E (50:50)
134640356.3
134640356.3
13842763
13482763
120797593.3
121157593.3
723,411
723,411
121,521,004
121,881,004
4607283
4607283
116,913,721
117,273,721
40919802.44
41045802.44
75993919
76227919
60080926.12
60139749.65
1.2649
1.2675

uity based on EPS

al capital Structure (WACC)

D:E (40:60)

uity based on WACC

103542665
789765305
2.88%
12.67%
88.41%
11.59%
3.50%

D:E (60:40)
107542665
785765305
2.88%
12.87%
87.96%
12.04%
3.54%

D:E (50:50)
105542665
787765305
2.88%
12.77%
88.19%
11.81%
3.52%

EBIT
Interest expense
Tax
No. Of Shares
Share Price (Mkt)
New EBIT
New Borrowing Rate
Expansion Plan
Debt
Equity
Rf

Rm

107,712,285
11682763
35%
59845632.00
34
134640356.3
18%
20000000
95542665
777765305
7.25%
1.080832393
3.21%

Fu-Wang Foods
For the year ended June30,2013
Trade Date

Closing Price

Stock Return (Y)

02-07-2012

32.70

03-07-2012

32.20

04-07-2012

31.30

05-07-2012

31.50

08-07-2012
09-07-2012

31.30
30.10

10-07-2012

28.10

11-07-2012
12-07-2012
15-07-2012
16-07-2012

29.00
30.30
28.00
27.60

17-07-2012

27.90

18-07-2012
19-07-2012

30.00
30.00

22-07-2012

30.00

23-07-2012

32.10

24-07-2012
25-07-2012
26-07-2012

33.20
31.90
33.00

29-07-2012
30-07-2012
01-08-2012
02-08-2012
05-08-2012
06-08-2012
07-08-2012
08-08-2012
12-08-2012
13-08-2012
14-08-2012
26-08-2012
27-08-2012
28-08-2012
29-08-2012
30-08-2012
02-09-2012
03-09-2012
04-09-2012
05-09-2012

32.90
32.00
31.60
31.50
29.90
30.80
30.70
32.00
32.60
31.60
31.90
33.60
33.20
33.20
35.70
33.50
33.80
34.10
35.10
33.40

06-09-2012
09-09-2012

32.90
33.70

DGEN
4,382.75

-1.529%
-2.795%
0.639%
-0.635%
-3.834%
-6.645%
3.203%
4.483%
-7.591%
-1.429%
1.087%
7.527%
0.000%
0.000%

4,360.53

7.000%
3.427%
-3.916%
3.448%
-0.303%
-2.736%
-1.250%
-0.316%
-5.079%
3.010%
-0.325%
4.235%
1.875%
-3.067%
0.949%
5.329%
-1.190%
0.000%
7.530%
-6.162%
0.896%
0.888%
2.933%
-4.843%
-1.497%
2.432%

4,201.88

4,283.87
4,290.81
4,272.67
4,145.00
3,989.00
4,077.70
4,164.96
4,001.14
3,994.08
4,027.80
4,183.33
4,166.54
4,124.29
4,318.79
4,222.18
4,284.97
4,234.77
4,159.17
4,118.42
4,098.70
4,039.87
4,092.28
4,092.16
4,142.24
4,236.46
4,208.40
4,256.32
4,383.42
4,341.26
4,291.87
4,453.43
4,446.87
4,452.89
4,477.32
4,482.40
4,371.54
4,324.76
4,384.99

10-09-2012
11-09-2012
12-09-2012
13-09-2012
16-09-2012
17-09-2012
18-09-2012
19-09-2012
20-09-2012
23-09-2012
24-09-2012
25-09-2012
26-09-2012
27-09-2012
30-09-2012
01-10-2012
02-10-2012
03-10-2012
04-10-2012
07-10-2012
08-10-2012
09-10-2012
10-10-2012
11-10-2012
14-10-2012
15-10-2012
16-10-2012
17-10-2012
18-10-2012
21-10-2012
22-10-2012
23-10-2012
30-10-2012
31-10-2012
01-11-2012
04-11-2012
05-11-2012
06-11-2012
07-11-2012
08-11-2012
11-11-2012
12-11-2012
13-11-2012
14-11-2012
15-11-2012
18-11-2012
20-11-2012

33.20
35.80
37.80
38.20
36.90
36.10
38.30
38.90
37.30
38.70
42.20
43.30
41.70
41.40
40.90
42.70
43.00
40.90
39.60
36.60
37.50
38.30
36.60
36.40
36.00
35.70
36.80
38.40
37.60
35.90
36.40
36.50
35.60
35.40
35.50
34.20
34.00
33.30
33.00
32.30
30.50
31.50
34.40
33.30
31.80
31.90
26.30

-1.484%
7.831%
5.587%
1.058%
-3.403%
-2.168%
6.094%
1.567%
-4.113%
3.753%
9.044%
2.607%
-3.695%
-0.719%
-1.208%
4.401%
0.703%
-4.884%
-3.178%
-7.576%
2.459%
2.133%
-4.439%
-0.546%
-1.099%
-0.833%
3.081%
4.348%
-2.083%
-4.521%
1.393%
0.275%
-2.466%
-0.562%
0.282%
-3.662%
-0.585%
-2.059%
-0.901%
-2.121%
-5.573%
3.279%
9.206%
-3.198%
-4.505%
0.314%
-17.555%

4,357.17
4,413.91
4,424.42
4,431.51
4,565.73
4,548.90
4,632.11
4,678.83
4,678.92
4,800.43
4,736.97
4,732.08
4,682.19
4,682.19
4,544.41
4,589.34
4,706.43
4,666.90
4,646.07
4,542.64
4,497.08
4,578.71
4,502.52
4,482.26
4,451.93
4,467.78
4,481.55
4,456.80
4,458.57
4,447.47
4,515.90
4,574.97
4,552.44
4,493.92
4,484.99
4,409.37
4,393.71
4,385.56
4,344.62
4,347.64
4,253.40
4,223.70
4,291.26
4,310.68
4,365.68
4,341.64
4,226.41

21-11-2012
22-11-2012
26-11-2012
27-11-2012
28-11-2012
29-11-2012
02-12-2012
03-12-2012
04-12-2012
05-12-2012
06-12-2012
09-12-2012
10-12-2012
11-12-2012
12-12-2012
13-12-2012
17-12-2012
18-12-2012
19-12-2012
20-12-2012
23-12-2012
24-12-2012
26-12-2012
27-12-2012
30-12-2012
01-01-2013
02-01-2013
03-01-2013
06-01-2013
07-01-2013
08-01-2013
09-01-2013
10-01-2013
13-01-2013
14-01-2013
15-01-2013
16-01-2013
17-01-2013
20-01-2013
21-01-2013
22-01-2013
23-01-2013
24-01-2013
27-01-2013
28-01-2013
29-01-2013
30-01-2013

26.70
26.90
25.90
25.90
26.20
28.50
27.40
26.90
26.90
26.60
26.60
25.80
25.30
25.40
25.10
25.30
25.60
25.40
25.70
25.90
25.60
25.50
25.50
25.90
26.00
50.80
25.60
25.50
25.60
25.60
25.20
24.90
24.50
25.00
24.60
24.60
24.30
24.50
24.20
23.70
23.70
23.80
24.10
24.50
24.60
24.30
26.40

1.521%
0.749%
-3.717%
0.000%
1.158%
8.779%
-3.860%
-1.825%
0.000%
-1.115%
0.000%
-3.008%
-1.938%
0.395%
-1.181%
0.797%
1.186%
-0.781%
1.181%
0.778%
-1.158%
-0.391%
0.000%
1.569%
0.386%
95.385%
-49.606%
-0.391%
0.392%
0.000%
-1.563%
-1.190%
-1.606%
2.041%
-1.600%
0.000%
-1.220%
0.823%
-1.224%
-2.066%
0.000%
0.422%
1.261%
1.660%
0.408%
-1.220%
8.642%

4,161.19
4,146.63
4,143.56
4,050.98
4,027.76
3,991.51
4,210.58
4,157.50
4,086.66
4,086.05
4,092.45
4,066.25
4,018.06
4,008.83
4,048.59
4,063.30
4,088.62
4,177.39
4,134.95
4,181.44
4,174.77
4,144.54
4,150.72
4,179.40
4,205.14
4,219.31
4,190.99
4,139.08
4,160.88
4,163.74
4,126.92
4,118.77
4,122.42
4,132.99
4,123.01
4,111.61
4,113.17
4,132.69
4,167.06
4,136.86
4,116.25
4,142.08
4,154.08
4,167.69
4,171.41
4,197.44
4,250.31

31-01-2013
03-02-2013
04-02-2013
05-02-2013
06-02-2013
07-02-2013
10-02-2013
11-02-2013
12-02-2013
13-02-2013
14-02-2013
17-02-2013
18-02-2013
19-02-2013
20-02-2013
24-02-2013
25-02-2013
26-02-2013
27-02-2013
28-02-2013
03-03-2013
04-03-2013
05-03-2013
06-03-2013
07-03-2013
10-03-2013
11-03-2013
12-03-2013
13-03-2013
14-03-2013
18-03-2013
19-03-2013
20-03-2013
24-03-2013
25-03-2013
27-03-2013
28-03-2013
31-03-2013
01-04-2013
02-04-2013
03-04-2013
04-04-2013
07-04-2013
08-04-2013
09-04-2013
10-04-2013
11-04-2013

25.20
25.20
25.40
25.30
25.20
25.30
25.20
25.40
25.60
25.60
25.50
26.60
26.40
26.40
26.20
25.50
24.60
24.30
24.80
24.20
24.30
22.60
23.30
23.00
22.80
22.90
22.20
22.30
22.50
23.10
23.30
23.30
23.40
23.20
22.60
22.30
21.50
22.20
22.10
20.90
21.20
21.30
21.40
21.50
21.90
23.30
22.80

-4.545%
0.000%
0.794%
-0.394%
-0.395%
0.397%
-0.395%
0.794%
0.787%
0.000%
-0.391%
4.314%
-0.752%
0.000%
-0.758%
-2.672%
-3.529%
-1.220%
2.058%
-2.419%
0.413%
-6.996%
3.097%
-1.288%
-0.870%
0.439%
-3.057%
0.450%
0.897%
2.667%
0.866%
0.000%
0.429%
-0.855%
-2.586%
-1.327%
-3.587%
3.256%
-0.450%
-5.430%
1.435%
0.472%
0.469%
0.467%
1.860%
6.393%
-2.146%

4,227.54
4,230.69
4,261.01
4,270.89
4,309.33
4,319.91
4,318.19
4,348.66
4,354.28
4,332.04
4,349.97
4,396.84
4,374.23
4,356.61
4,301.12
4,254.55
4,144.95
4,093.29
4,147.30
4,035.27
4,047.23
3,848.99
3,982.49
3,963.26
3,937.46
3,914.23
3,873.46
3,842.32
3,872.54
3,925.21
3,935.96
3,947.74
3,976.90
3,938.51
3,860.13
3,818.30
3,749.08
3,794.29
3,722.41
3,610.43
3,654.75
3,673.51
3,657.04

3,650.68
3,665.42
3,732.65
3,738.70

15-04-2013
16-04-2013
17-04-2013
18-04-2013
21-04-2013
22-04-2013
23-04-2013
24-04-2013
25-04-2013
28-04-2013
29-04-2013
30-04-2013
02-05-2013
05-05-2013
06-05-2013
07-05-2013
08-05-2013
09-05-2013
12-05-2013
13-05-2013
14-05-2013
15-05-2013
16-05-2013
19-05-2013
20-05-2013
21-05-2013
22-05-2013
26-05-2013
27-05-2013
28-05-2013
29-05-2013
30-05-2013
02-06-2013
03-06-2013
04-06-2013
05-06-2013
06-06-2013
09-06-2013
10-06-2013
11-06-2013
12-06-2013
13-06-2013
16-06-2013
17-06-2013
18-06-2013
19-06-2013
20-06-2013

22.60
23.00
22.50
22.90
22.70
22.10
21.70
21.70
21.60
21.60
21.30
21.50
20.90
21.10
21.20
21.20
21.80
21.20
21.40
22.70
22.80
23.80
23.10
24.30
25.60
24.70
24.20
23.50
23.10
23.40
23.30
23.80
23.70
25.00
25.20
24.90
27.30
27.00
25.80
28.20
28.20
27.30
28.00
30.50
29.40
29.00
28.60

-0.877%
1.770%
-2.174%
1.778%
-0.873%
-2.643%
-1.810%
0.000%
-0.461%
0.000%
-1.389%
0.939%
-2.791%
0.957%
0.474%
0.000%
2.830%
-2.752%
0.943%
6.075%
0.441%
4.386%
-2.941%
5.195%
5.350%
-3.516%
-2.024%
-2.893%
-1.702%
1.299%
-0.427%
2.146%
-0.420%
5.485%
0.800%
-1.190%
9.639%
-1.099%
-4.444%
9.302%
0.000%
-3.191%
2.564%
8.929%
-3.607%
-1.361%
-1.379%

3,720.36
3,763.72
3,698.73
3,701.89
3,707.49
3,666.99
3,660.88
3,662.41
3,660.60
3,653.88
3,620.89
3,617.35

3,618.49
3,654.86
3,655.31
3,663.12
3,710.09
3,704.35
3,742.21
3,816.75
3,875.83
3,957.06
3,901.23
3,982.07
4,079.98
4,096.76
4,047.24
3,974.15
3,895.02
3,958.81
3,977.45
4,082.48
4,100.51
4,162.80
4,216.60
4,222.95
4,310.63
4,300.74
4,133.60
4,266.63
4,309.69
4,328.48
4,299.66
4,385.89
4,373.62
4,386.50
4,477.09

23-06-2013
24-06-2013
26-06-2013
27-06-2013
30-06-2013

29.00
27.10
26.40
26.80
27.00

1.399%
-6.552%
-2.583%
1.515%
0.746%

4,429.63
4,427.99
4,410.12
4,465.47
4,425.48

Mkt Return (X)

-0.51%
-1.76%
0.16%
-0.42%
-2.99%
-3.76%
2.22%
2.14%
-3.93%
-0.18%
0.84%
3.86%
-0.40%
-1.01%
1.88%
2.78%
-2.24%
1.49%
-1.17%
-1.79%
-0.98%
-0.48%
-1.44%
1.30%
0.00%
1.22%
2.27%
-0.66%
1.14%
2.99%
-0.96%
-1.14%
3.76%
-0.15%
0.14%
0.55%
0.11%
-2.47%
-1.07%
1.39%

Average Return on DSEX ( )

Std. Deviation of X (x)
Average Return on Closing Price ( )
Std. Deviation of Y (y)

1
2

Covariance
Correlation Coefficient (r)
Cost of Equity (Ke)

Risk Free Rate (91Days)

Rm
Interest
Cost of Debt (Kd)
Total Equity (E)
Total debt (D)
WE
WD

4
5

Tax Rate (t)

WACC
EPS

-0.63%
1.30%
0.24%
0.16%
3.03%
-0.37%
1.83%
1.01%
0.00%
2.60%
-1.32%
-0.10%
-1.05%
0.00%
-2.94%
0.99%
2.55%
-0.84%
-0.45%
-2.23%
-1.00%
1.82%
-1.66%
-0.45%
-0.68%
0.36%
0.31%
-0.55%
0.04%
-0.25%
1.54%
1.31%
-0.49%
-1.29%
-0.20%
-1.69%
-0.36%
-0.19%
-0.93%
0.07%
-2.17%
-0.70%
1.60%
0.45%
1.28%
-0.55%
-2.65%

-1.54%
-0.35%
-0.07%
-2.23%
-0.57%
-0.90%
5.49%
-1.26%
-1.70%
-0.01%
0.16%
-0.64%
-1.18%
-0.23%
0.99%
0.36%
0.62%
2.17%
-1.02%
1.12%
-0.16%
-0.72%
0.15%
0.69%
0.62%
0.34%
-0.67%
-1.24%
0.53%
0.07%
-0.88%
-0.20%
0.09%
0.26%
-0.24%
-0.28%
0.04%
0.47%
0.83%
-0.72%
-0.50%
0.63%
0.29%
0.33%
0.09%
0.62%
1.26%

-0.54%
0.07%
0.72%
0.23%
0.90%
0.25%
-0.04%
0.71%
0.13%
-0.51%
0.41%
1.08%
-0.51%
-0.40%
-1.27%
-1.08%
-2.58%
-1.25%
1.32%
-2.70%
0.30%
-4.90%
3.47%
-0.48%
-0.65%
-0.59%
-1.04%
-0.80%
0.79%
1.36%
0.27%
0.30%
0.74%
-0.97%
-1.99%
-1.08%
-1.08%
-1.81%
1.21%
-1.89%
-3.01%
1.23%
0.51%
-0.45%
-0.17%
0.40%
1.83%

0.16%
-0.49%
1.17%
-1.73%
0.09%
0.15%
-1.09%
-0.17%
0.04%
-0.05%
-0.18%
-0.90%
-0.10%
0.03%
1.01%
0.01%
0.21%
1.28%
-0.15%
1.02%
1.99%
1.55%
2.10%
-1.41%
2.07%
2.46%
0.41%
-1.21%
-1.81%
-1.99%
1.64%
0.47%
2.64%
0.44%
1.52%
1.29%
1.29%
0.15%
2.08%
-0.23%
-3.89%
3.22%
1.01%
0.44%
-0.67%
2.01%
-0.28%

0.29%
2.07%
-1.06%
-0.04%
-0.40%

0.01%
0.014397698
0.178%
0.078220438
0.000223088
0.198944152
2.88%
1.080832393
7.25%
3.21%
11682763
12.23%
777,765,305
95542665
89.06%
10.94%
27.50%
3.53%
1.12