• You do not need to calculate the illiquidity discount.

• When calculating the growth rate, you need to project the balance sheet up to 2012.

• Note that footnote 7 states that the denominator of the ROIC is equal to the book
value of equity + long-term debt.

• If you do not know how to calculate the growth rate in Question 6, use g = 1.9%.

• Note that using this hint - as well as the 1.4% in the previous question would incur
a loss of points.

• In 2012, the company makes the bullet payment and at that point, covers its fi-
nancing needs by issuing long-term debt.