Debt Proportion (in US$'000) Actual 10% 20% 30%

Bu 0.85 0.85 0.85 0.85

Tax Rate 32.50% 32.50% 32.50% 32.50%
Market Value of Debt or D 0 22589 45178 67766
Market Value of Equity or E 643773 628516 613259 598002
Market Value of Capital 643773 651105 658437 665768
BL 0.85 0.87 0.89 0.91
Risk Free Rate 5.20% 5.20% 5.20% 5.20%
Risk Premium 5.10% 5.10% 5.10% 5.10%
Cost of Equity (Re) 9.5% 9.6% 9.7% 9.8%
Pre-Tax Cost of Debt 6.16% 6.16% 6.16% 6.16%
Post-Tax Cost of Debt 4.16% 4.16% 4.16% 4.16%
Weight of Debt 0.00% 3.47% 6.86% 10.18%
Weight of Equity 100.00% 96.53% 93.14% 89.82%
WACC 9.5% 9.4% 9.4% 9.3%
 22.1 29.13 643.773

Effect of use Debt on CPK's Value

Debt Proportion (in US$'000) Actual 10% 20%
Tax Rate 32.50% 32.50% 32.50%
Book Value of Debt or D 0 22.589 45.178
Value of Lefered Firm 643.773 651.114425 658.45585

Debt Boost ROE

Debt Proportion (in US$'000) Actual 10% 20%
Total Equity 225,888.00 203,299.00 180,710.00
Net Profit 20,299.00 19,359.00 18,419.00
ROE (%) 8.99% 9.52% 10.19%

Effect of use Debt on Shareprice

Debt Proportion (in US$'000) 10% 20% 30%
Book Value of Debt for purpose of 22,589,000.00 45,178,000.00 67,766,000.00
share repurchase
Shares can be repurchased at US$ 1.02 2.04 3.07
22.10 per share (in million)
Current Outstanding Shares (in 29.13 29.13 29.13
million)
New Outstanding Shares (in million) 28.11 27.09 26.06
Market Value Equity (in US$'000) 628516 613259 598002
New Shares Price 22.36 22.64 22.94

Effect of use Debt on Economic Value Added

Debt Proportion (in US$'000) Actual 10% 20%
EBIT 30,054.00 30,054.00 30,054.00
Tax Rate 32.50% 32.50% 32.50%
NOPAT 20286.45 20286.45 20286.45
Book Value of Debt or D 0.00 22,589.00 45,178.00
Book Value of Equity or E 225,888.00 203,299.00 180,710.00
Invested Capital 225,888.00 225,888.00 225,888.00
WACC 9.54% 9.45% 9.35%
Economic Value Added (EVA) -1,251.97 -1,051.94 -840.99

Effect of use debt on EPS

Debt Proportion (in US$'000) Actual 10% 20%
Net Profit 20,299.00 19,359.00 18,419.00
Shares Outstanding (In Million) 29.13 28.11 27.09
Earning Per Share $ 0.70 $ 0.69 $ 0.68
P/E Ratio $ 31.71 $ 32.09 $ 32.50
 30%
32.50%
67.766
665.79695

30%
158,122.00
17,480.00
11.05%

30%
30,054.00
32.50%
20286.45
67,766.00
158,122.00
225,888.00
9.26%
-619.98

30%
17,480.00
26.06
$ 0.67
$ 32.95