203 lines
233 KiB
Plaintext
203 lines
233 KiB
Plaintext
<!DOCTYPE html>
|
||
<!--
|
||
Copyright 2012 Mozilla Foundation
|
||
|
||
Licensed under the Apache License, Version 2.0 (the "License");
|
||
you may not use this file except in compliance with the License.
|
||
You may obtain a copy of the License at
|
||
|
||
http://www.apache.org/licenses/LICENSE-2.0
|
||
|
||
Unless required by applicable law or agreed to in writing, software
|
||
distributed under the License is distributed on an "AS IS" BASIS,
|
||
WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
|
||
See the License for the specific language governing permissions and
|
||
limitations under the License.
|
||
-->
|
||
<html dir="ltr" mozdisallowselectionprint=""><head>
|
||
<meta http-equiv="content-type" content="text/html; charset=UTF-8">
|
||
<meta charset="utf-8">
|
||
<meta name="viewport" content="width=device-width, initial-scale=1, maximum-scale=1">
|
||
<title>Microsoft Word - Economic Model V2.0.doc - economicmodelv20a.pdf</title>
|
||
|
||
<!-- This snippet is used in firefox extension, see Makefile -->
|
||
<!-- base href="resource://pdf.js/web/" -->
|
||
<script type="text/javascript" src="Microsoft%20Word%20-%20Economic%20Model%20V2.0.doc%20-%20economicmodelv20a_files/l10n.js"></script>
|
||
<script type="text/javascript" src="Microsoft%20Word%20-%20Economic%20Model%20V2.0.doc%20-%20economicmodelv20a_files/pdf.js"></script>
|
||
|
||
|
||
<link rel="stylesheet" href="Microsoft%20Word%20-%20Economic%20Model%20V2.0.doc%20-%20economicmodelv20a_files/viewer.css">
|
||
|
||
|
||
|
||
|
||
|
||
|
||
<script type="text/javascript" src="Microsoft%20Word%20-%20Economic%20Model%20V2.0.doc%20-%20economicmodelv20a_files/debugger.js"></script>
|
||
<script type="text/javascript" src="Microsoft%20Word%20-%20Economic%20Model%20V2.0.doc%20-%20economicmodelv20a_files/viewer.js"></script>
|
||
<style id="PDFJS_FONT_STYLE_TAG"></style></head>
|
||
|
||
<body>
|
||
<div id="outerContainer">
|
||
|
||
<div id="sidebarContainer">
|
||
<div id="toolbarSidebar">
|
||
<div class="splitToolbarButton toggled">
|
||
<button id="viewThumbnail" class="toolbarButton group toggled" title="Show Thumbnails" tabindex="1" data-l10n-id="thumbs">
|
||
<span data-l10n-id="thumbs_label">Thumbnails</span>
|
||
</button>
|
||
<button id="viewOutline" class="toolbarButton group" title="Show Document Outline" tabindex="2" data-l10n-id="outline">
|
||
<span data-l10n-id="outline_label">Document Outline</span>
|
||
</button>
|
||
</div>
|
||
</div>
|
||
<div id="sidebarContent">
|
||
<div id="thumbnailView"><a title="Page 1" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=1"><div data-loaded="true" class="thumbnail" id="thumbnailContainer1"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 1" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail1"></canvas></div></div></a><a title="Page 2" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=2"><div data-loaded="true" class="thumbnail" id="thumbnailContainer2"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 2" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail2"></canvas></div></div></a><a title="Page 3" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=3"><div data-loaded="true" class="thumbnail" id="thumbnailContainer3"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 3" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail3"></canvas></div></div></a><a title="Page 4" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=4"><div data-loaded="true" class="thumbnail" id="thumbnailContainer4"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 4" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail4"></canvas></div></div></a><a title="Page 5" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=5"><div data-loaded="true" class="thumbnail" id="thumbnailContainer5"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 5" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail5"></canvas></div></div></a><a title="Page 6" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=6"><div data-loaded="true" class="thumbnail selected" id="thumbnailContainer6"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 6" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail6"></canvas></div></div></a><a title="Page 7" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=7"><div data-loaded="true" class="thumbnail" id="thumbnailContainer7"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"><canvas aria-label="Thumbnail of Page 7" class="thumbnailImage" height="126" width="98" moz-opaque="" id="thumbnail7"></canvas></div></div></a><a title="Page 8" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=8"><div class="thumbnail" id="thumbnailContainer8"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 9" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=9"><div class="thumbnail" id="thumbnailContainer9"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 10" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=10"><div class="thumbnail" id="thumbnailContainer10"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 11" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=11"><div class="thumbnail" id="thumbnailContainer11"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 12" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=12"><div class="thumbnail" id="thumbnailContainer12"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 13" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=13"><div class="thumbnail" id="thumbnailContainer13"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 14" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=14"><div class="thumbnail" id="thumbnailContainer14"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 15" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=15"><div class="thumbnail" id="thumbnailContainer15"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 16" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=16"><div class="thumbnail" id="thumbnailContainer16"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 17" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=17"><div class="thumbnail" id="thumbnailContainer17"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 18" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=18"><div class="thumbnail" id="thumbnailContainer18"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 19" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=19"><div class="thumbnail" id="thumbnailContainer19"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 20" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=20"><div class="thumbnail" id="thumbnailContainer20"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 21" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=21"><div class="thumbnail" id="thumbnailContainer21"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 22" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=22"><div class="thumbnail" id="thumbnailContainer22"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 23" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=23"><div class="thumbnail" id="thumbnailContainer23"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 24" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=24"><div class="thumbnail" id="thumbnailContainer24"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 25" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=25"><div class="thumbnail" id="thumbnailContainer25"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 26" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=26"><div class="thumbnail" id="thumbnailContainer26"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 27" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=27"><div class="thumbnail" id="thumbnailContainer27"><div style="width: 98px; height: 126.824px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 28" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=28"><div class="thumbnail" id="thumbnailContainer28"><div style="width: 98px; height: 75.7273px;" class="thumbnailSelectionRing"></div></div></a><a title="Page 29" href="http://www.rbcpa.com/economicmodelv20a.pdf#page=29"><div class="thumbnail" id="thumbnailContainer29"><div style="width: 98px; height: 75.7273px;" class="thumbnailSelectionRing"></div></div></a></div>
|
||
<div id="outlineView" class="hidden"><div class="noOutline">No Outline Available</div></div>
|
||
</div>
|
||
</div> <!-- sidebarContainer -->
|
||
|
||
<div id="mainContainer">
|
||
<div class="findbar hidden doorHanger" id="findbar">
|
||
<label for="findInput" class="toolbarLabel" data-l10n-id="find_label">Find:</label>
|
||
<input id="findInput" class="toolbarField" tabindex="20">
|
||
<div class="splitToolbarButton">
|
||
<button class="toolbarButton findPrevious" title="Find the previous occurrence of the phrase" id="findPrevious" tabindex="21" data-l10n-id="find_previous">
|
||
<span data-l10n-id="find_previous_label">Previous</span>
|
||
</button>
|
||
<div class="splitToolbarButtonSeparator"></div>
|
||
<button class="toolbarButton findNext" title="Find the next occurrence of the phrase" id="findNext" tabindex="22" data-l10n-id="find_next">
|
||
<span data-l10n-id="find_next_label">Next</span>
|
||
</button>
|
||
</div>
|
||
<input id="findHighlightAll" class="toolbarField" type="checkbox">
|
||
<label for="findHighlightAll" class="toolbarLabel" tabindex="23" data-l10n-id="find_highlight">Highlight all</label>
|
||
<input id="findMatchCase" class="toolbarField" type="checkbox">
|
||
<label for="findMatchCase" class="toolbarLabel" tabindex="24" data-l10n-id="find_match_case_label">Match case</label>
|
||
<span id="findMsg" class="toolbarLabel"></span>
|
||
</div>
|
||
<div class="toolbar">
|
||
<div id="toolbarContainer">
|
||
<div id="toolbarViewer">
|
||
<div id="toolbarViewerLeft">
|
||
<button id="sidebarToggle" class="toolbarButton" title="Toggle Slider" tabindex="3" data-l10n-id="toggle_slider">
|
||
<span data-l10n-id="toggle_slider_label">Toggle Slider</span>
|
||
</button>
|
||
<div class="toolbarButtonSpacer"></div>
|
||
<button id="viewFind" class="toolbarButton group hidden" title="Find in Document" tabindex="4" data-l10n-id="findbar">
|
||
<span data-l10n-id="findbar_label">Find</span>
|
||
</button>
|
||
<div class="splitToolbarButton">
|
||
<button class="toolbarButton pageUp" title="Previous Page" id="previous" tabindex="5" data-l10n-id="previous">
|
||
<span data-l10n-id="previous_label">Previous</span>
|
||
</button>
|
||
<div class="splitToolbarButtonSeparator"></div>
|
||
<button class="toolbarButton pageDown" title="Next Page" id="next" tabindex="6" data-l10n-id="next">
|
||
<span data-l10n-id="next_label">Next</span>
|
||
</button>
|
||
</div>
|
||
<label id="pageNumberLabel" class="toolbarLabel" for="pageNumber" data-l10n-id="page_label">Page:</label>
|
||
<input max="29" id="pageNumber" class="toolbarField pageNumber" value="6" size="4" min="1" tabindex="7" type="number">
|
||
|
||
<span id="numPages" class="toolbarLabel">of 29</span>
|
||
</div>
|
||
<div id="toolbarViewerRight">
|
||
<input id="fileInput" class="fileInput" oncontextmenu="return false;" style="visibility: hidden; position: fixed; right: 0; top: 0" type="file">
|
||
|
||
|
||
<button id="fullscreen" class="toolbarButton fullscreen" title="Switch to Presentation Mode" tabindex="11" data-l10n-id="presentation_mode">
|
||
<span data-l10n-id="presentation_mode_label">Presentation Mode</span>
|
||
</button>
|
||
|
||
<button id="openFile" class="toolbarButton openFile" title="Open File" tabindex="12" data-l10n-id="open_file" hidden="true">
|
||
<span data-l10n-id="open_file_label">Open</span>
|
||
</button>
|
||
|
||
<button id="print" class="toolbarButton print" title="Print" tabindex="13" data-l10n-id="print">
|
||
<span data-l10n-id="print_label">Print</span>
|
||
</button>
|
||
|
||
<button id="download" class="toolbarButton download" title="Download" tabindex="14" data-l10n-id="download">
|
||
<span data-l10n-id="download_label">Download</span>
|
||
</button>
|
||
<!-- <div class="toolbarButtonSpacer"></div> -->
|
||
<a href="http://www.rbcpa.com/economicmodelv20a.pdf#page=5&zoom=auto,0,143" id="viewBookmark" class="toolbarButton bookmark" title="Current view (copy or open in new window)" tabindex="15" data-l10n-id="bookmark"><span data-l10n-id="bookmark_label">Current View</span></a>
|
||
</div>
|
||
<div class="outerCenter">
|
||
<div class="innerCenter" id="toolbarViewerMiddle">
|
||
<div class="splitToolbarButton">
|
||
<button class="toolbarButton zoomOut" title="Zoom Out" tabindex="8" data-l10n-id="zoom_out">
|
||
<span data-l10n-id="zoom_out_label">Zoom Out</span>
|
||
</button>
|
||
<div class="splitToolbarButtonSeparator"></div>
|
||
<button class="toolbarButton zoomIn" title="Zoom In" tabindex="9" data-l10n-id="zoom_in">
|
||
<span data-l10n-id="zoom_in_label">Zoom In</span>
|
||
</button>
|
||
</div>
|
||
<span id="scaleSelectContainer" class="dropdownToolbarButton">
|
||
<select id="scaleSelect" title="Zoom" oncontextmenu="return false;" tabindex="10" data-l10n-id="zoom">
|
||
<option id="pageAutoOption" value="auto" selected="selected" data-l10n-id="page_scale_auto">Automatic Zoom</option>
|
||
<option id="pageActualOption" value="page-actual" data-l10n-id="page_scale_actual">Actual Size</option>
|
||
<option id="pageFitOption" value="page-fit" data-l10n-id="page_scale_fit">Page Fit</option>
|
||
<option id="pageWidthOption" value="page-width" data-l10n-id="page_scale_width">Page Width</option>
|
||
<option id="customScaleOption" value="custom"></option>
|
||
<option value="0.5">50%</option>
|
||
<option value="0.75">75%</option>
|
||
<option value="1">100%</option>
|
||
<option value="1.25">125%</option>
|
||
<option value="1.5">150%</option>
|
||
<option value="2">200%</option>
|
||
</select>
|
||
</span>
|
||
</div>
|
||
</div>
|
||
</div>
|
||
</div>
|
||
</div>
|
||
|
||
<menu type="context" id="viewerContextMenu">
|
||
<menuitem label="Go to First Page" id="first_page" data-l10n-id="first_page"></menuitem>
|
||
<menuitem label="Go to Last Page" id="last_page" data-l10n-id="last_page"></menuitem>
|
||
<menuitem label="Rotate Counterclockwise" id="page_rotate_ccw" data-l10n-id="page_rotate_ccw"></menuitem>
|
||
<menuitem label="Rotate Clockwise" id="page_rotate_cw" data-l10n-id="page_rotate_cw"></menuitem>
|
||
</menu>
|
||
|
||
<div id="viewerContainer">
|
||
<div id="viewer" contextmenu="viewerContextMenu"><a name="1"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer1"><canvas height="1056" width="816" moz-opaque="" id="page1"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 24px; font-family: serif; left: 138px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">T</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 136.961px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">T</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 154.001px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 152.962px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 172.642px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 171.602px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 188.64px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 187.601px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 194.64px; top: 95.36px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 193.601px; top: 94.3208px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 217.361px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 216.322px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 233.362px; top: 95.36px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 232.322px; top: 94.3208px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 250.723px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 249.684px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 269.364px; top: 95.36px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">A</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 268.325px; top: 94.3208px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">A</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 286.726px; top: 95.36px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">N</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 285.686px; top: 94.3208px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">N</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 304.087px; top: 95.36px; transform: scale(1.167, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.336">I</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 303.048px; top: 94.3208px; transform: scale(1.167, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.336">I</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 313.447px; top: 95.36px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 312.408px; top: 94.3208px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 330.809px; top: 95.36px; transform: scale(0.999551, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.344000000000001">S</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 329.77px; top: 94.3208px; transform: scale(0.999551, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.344000000000001">S</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 344.16px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 343.121px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 350.081px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 349.042px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 368.722px; top: 95.36px; transform: scale(1.09843, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="14.664">F</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 367.682px; top: 94.3208px; transform: scale(1.09843, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="14.664">F</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 383.36px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 382.321px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 389.36px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">T</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 388.321px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">T</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 405.361px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 404.322px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">H</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 424.081px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 423.042px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 440.08px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 439.041px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 446.08px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 445.041px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 462.081px; top: 95.36px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 461.042px; top: 94.3208px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 479.442px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 478.403px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 498.083px; top: 95.36px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">N</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 497.044px; top: 94.3208px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">N</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 515.445px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 514.406px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 534.086px; top: 95.36px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 533.046px; top: 94.3208px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 556.727px; top: 95.36px; transform: scale(1.167, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.336">I</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 555.688px; top: 94.3208px; transform: scale(1.167, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.336">I</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 566.087px; top: 95.36px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 565.048px; top: 94.3208px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">C</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 583.44px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 582.401px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 589.44px; top: 95.36px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 588.401px; top: 94.3208px; transform: scale(1.062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="22.656000000000002">M</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 612.082px; top: 95.36px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 611.042px; top: 94.3208px; transform: scale(1.07723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.672">O</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 630.722px; top: 95.36px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">D</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 629.683px; top: 94.3208px; transform: scale(0.999692, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.328">D</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 648.084px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 647.045px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">E</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 664.085px; top: 95.36px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">L</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 663.046px; top: 94.3208px; transform: scale(1.09145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16.008000000000003">L</div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 680.08px; top: 95.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 24px; font-family: serif; left: 679.041px; top: 94.3208px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 123.2px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 122.64px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 233.04px; top: 137.76px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">R</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 230.32px; top: 135.04px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">R</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 231.681px; top: 136.401px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">R</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 246.481px; top: 137.762px; transform: scale(1.07821, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="14.501919525146485">O</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 243.762px; top: 135.042px; transform: scale(1.07821, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="14.501919525146485">O</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 245.122px; top: 136.403px; transform: scale(1.07821, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="14.501919525146485">O</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 260.963px; top: 137.764px; transform: scale(1.16951, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.250959762573243">I</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 258.243px; top: 135.044px; transform: scale(1.16951, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.250959762573243">I</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 259.604px; top: 136.405px; transform: scale(1.16951, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.250959762573243">I</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 268.243px; top: 137.766px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 265.524px; top: 135.046px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 266.885px; top: 136.407px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 281.765px; top: 137.767px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 279.045px; top: 135.048px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 280.406px; top: 136.409px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 286.406px; top: 137.769px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 283.687px; top: 135.05px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 285.047px; top: 136.41px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 291.048px; top: 137.771px; transform: scale(1.06009, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.639999389648438">W</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 288.328px; top: 135.052px; transform: scale(1.06009, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.639999389648438">W</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 289.689px; top: 136.412px; transform: scale(1.06009, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="18.639999389648438">W</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 309.77px; top: 137.773px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 307.05px; top: 135.053px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 308.411px; top: 136.414px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 323.211px; top: 137.775px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 320.491px; top: 135.055px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 321.852px; top: 136.416px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 336.652px; top: 137.777px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 333.933px; top: 135.057px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 335.293px; top: 136.418px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 350.174px; top: 137.779px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 347.454px; top: 135.059px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 348.815px; top: 136.42px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 354.815px; top: 137.78px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 352.096px; top: 135.061px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 353.456px; top: 136.422px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 359.537px; top: 137.782px; transform: scale(1.0922, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.432879592895508">E</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 356.817px; top: 135.063px; transform: scale(1.0922, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.432879592895508">E</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 358.178px; top: 136.423px; transform: scale(1.0922, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.432879592895508">E</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 371.938px; top: 137.784px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 369.218px; top: 135.065px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 370.579px; top: 136.425px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 385.459px; top: 137.786px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 382.74px; top: 135.066px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 384.1px; top: 136.427px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 398.901px; top: 137.788px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 396.181px; top: 135.068px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 397.542px; top: 136.429px; transform: scale(1.00215, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109">,</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 403.542px; top: 137.79px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 400.822px; top: 135.07px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 402.183px; top: 136.431px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 408.183px; top: 137.792px; transform: scale(1.06214, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.596159423828126">M</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 405.464px; top: 135.072px; transform: scale(1.06214, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.596159423828126">M</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 406.824px; top: 136.433px; transform: scale(1.06214, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="17.596159423828126">M</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 425.865px; top: 137.794px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 423.146px; top: 135.074px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 424.506px; top: 136.435px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">V</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 439.307px; top: 137.795px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 436.587px; top: 135.076px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 437.948px; top: 136.437px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 452.828px; top: 137.797px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 450.108px; top: 135.078px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 451.469px; top: 136.438px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 457.549px; top: 137.799px; transform: scale(1.07084, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="15.527119491577148">&</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 454.83px; top: 135.08px; transform: scale(1.07084, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="15.527119491577148">&</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 456.191px; top: 136.44px; transform: scale(1.07084, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="15.527119491577148">&</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 473.071px; top: 137.801px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 470.351px; top: 135.081px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 471.712px; top: 136.442px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 477.712px; top: 137.803px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 474.993px; top: 135.083px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 476.354px; top: 136.444px; transform: scale(1.08242, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">C</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 491.234px; top: 137.805px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 488.514px; top: 135.085px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 489.875px; top: 136.446px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">A</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 504.675px; top: 137.807px; transform: scale(1.09862, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.389039627075196">P</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 501.956px; top: 135.087px; transform: scale(1.09862, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.389039627075196">P</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 503.316px; top: 136.448px; transform: scale(1.09862, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.389039627075196">P</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 516.116px; top: 137.808px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 513.397px; top: 135.089px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 514.758px; top: 136.45px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 520.758px; top: 137.81px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">D</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 518.038px; top: 135.091px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">D</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 519.399px; top: 136.451px; transform: scale(1.0006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="13.45807955932617">D</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 534.279px; top: 137.812px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 531.56px; top: 135.093px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 532.92px; top: 136.453px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 542.52px; top: 137.814px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6.20711979675293">f</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 539.8px; top: 135.094px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6.20711979675293">f</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 541.161px; top: 136.455px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="6.20711979675293">f</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 548.761px; top: 137.816px; transform: scale(0.999727, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.181919830322266">i</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 546.041px; top: 135.096px; transform: scale(0.999727, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.181919830322266">i</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 547.402px; top: 136.457px; transform: scale(0.999727, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.181919830322266">i</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 553.961px; top: 137.818px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">n</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 551.242px; top: 135.098px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">n</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 552.602px; top: 136.459px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">n</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 564.362px; top: 137.82px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 561.643px; top: 135.1px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 563.003px; top: 136.461px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.276159729003906">e</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 572.603px; top: 137.821px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">d</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 569.883px; top: 135.102px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">d</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 571.244px; top: 136.463px; transform: scale(1.1124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.363839660644532">d</div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 583.004px; top: 137.823px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 580.285px; top: 135.104px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 18.64px; font-family: serif; left: 581.645px; top: 136.464px; transform: scale(0.998571, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4.659999847412109"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 160px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 159.44px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 175.36px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 174.8px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.56px; top: 190.64px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408px; top: 190.08px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408px; top: 205.28px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 532.96px; top: 312.32px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.56px; top: 325.281px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408px; top: 324.721px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 319.76px; top: 339.92px; transform: scale(1.00193, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="176.52301606445315">www.management.mcgill.ca/mic</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 496.24px; top: 339.92px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.5595px; top: 356px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 355.44px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 16px; font-family: sans-serif; left: 152.16px; top: 368.8px; transform: scale(0.807949, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_6" data-canvas-width="515.3503999999998">“To quietly persevere in storing up what is learned, to continue studying without respite, to </div><div dir="ltr" style="font-size: 16px; font-family: sans-serif; left: 248px; top: 386.8px; transform: scale(0.821013, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_6" data-canvas-width="323.52000000000004">instruct others without growing weary – is this not me?” </div><div dir="ltr" style="font-size: 16px; font-family: sans-serif; left: 144px; top: 412.72px; transform: scale(0.794544, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_6" data-canvas-width="78.448"> - Confucius</div><div dir="ltr" style="font-size: 16px; font-family: monospace; left: 222.96px; top: 413.36px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_7" data-canvas-width="9.6"> </div><div dir="ltr" style="font-size: 16px; font-family: monospace; left: 222.32px; top: 412.72px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_7" data-canvas-width="9.6"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 433.2px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 432.64px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 448.48px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 447.92px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 463.84px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 463.28px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 479.2px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 478.64px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 494.48px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 493.92px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 332.64px; top: 509.76px; transform: scale(1.0005, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.672">B</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 332px; top: 509.12px; transform: scale(1.03614, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="23.952">By:</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 356.64px; top: 509.76px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 356px; top: 509.12px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 360.64px; top: 509.76px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">A</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 360px; top: 509.12px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">A</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 372.16px; top: 509.76px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">N</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 371.52px; top: 509.12px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">N</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 383.68px; top: 509.76px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">D</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 383.04px; top: 509.12px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">D</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 395.28px; top: 509.76px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">R</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 394.64px; top: 509.12px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">R</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 406.88px; top: 509.76px; transform: scale(1.0927, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.672">E</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 406.24px; top: 509.12px; transform: scale(1.0927, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.672">E</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 417.52px; top: 509.76px; transform: scale(1.0596, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16">W</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 416.88px; top: 509.12px; transform: scale(1.0596, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="16">W</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 433.52px; top: 509.76px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 432.88px; top: 509.12px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 437.52px; top: 509.76px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">C</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 436.88px; top: 509.12px; transform: scale(1.083, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">C</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 449.04px; top: 509.76px; transform: scale(1.07775, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.448">H</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 448.4px; top: 509.12px; transform: scale(1.07775, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.448">H</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 461.52px; top: 509.76px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">A</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 460.88px; top: 509.12px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">A</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 473.04px; top: 509.76px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">N</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 472.4px; top: 509.12px; transform: scale(1.00017, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="11.552">N</div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 484.64px; top: 509.76px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 484px; top: 509.12px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408px; top: 527.68px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 356.64px; top: 543.04px; transform: scale(1.04157, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="105.9795408416748">McGill University </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 330.96px; top: 558.32px; transform: scale(1.07421, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="157.49703919525146">Montréal, Québec, Canada </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 329.439px; top: 573.519px; transform: scale(0.998457, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="157.20712718200684">andrewychan_@hotmail.com</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 486.48px; top: 573.52px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 407.999px; top: 588.8px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 407.999px; top: 604.16px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 364.88px; top: 619.52px; transform: scale(0.998865, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="86.40179594726563">November 2001</div></div></div><a name="2"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer2"><canvas height="1056" width="816" moz-opaque="" id="page2"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">1</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 336.64px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 336.08px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 345.52px; top: 95.5999px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">A</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 344.961px; top: 95.0401px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">A</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 355.201px; top: 95.5999px; transform: scale(0.999378, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">B</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 354.641px; top: 95.0401px; transform: scale(0.999378, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">B</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 364.081px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">L</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 363.522px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">L</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 372.962px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 372.402px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 381.842px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 381.282px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 385.202px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 384.642px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 395.603px; top: 95.5999px; transform: scale(1.09816, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.162960372924804">F</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 395.043px; top: 95.0401px; transform: scale(1.09816, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.162960372924804">F</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 403.763px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 403.204px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 407.043px; top: 95.5999px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 406.483px; top: 95.0401px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.644px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.084px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 427.044px; top: 95.5999px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 426.485px; top: 95.0401px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 436.725px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 436.165px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 445.606px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 445.046px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 454.486px; top: 95.5999px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 453.926px; top: 95.0401px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 464.167px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 463.607px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 473.047px; top: 95.5999px; transform: scale(0.999304, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.428160339355469">S</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 472.487px; top: 95.0401px; transform: scale(0.999304, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.428160339355469">S</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 480.487px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 479.927px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.568px; top: 110.96px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.008px; top: 110.4px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 125.68px; transform: scale(1.10093, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="72.75321932373048">Introduction</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 235.927px; top: 125.68px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 140.88px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 646.087px; top: 125.52px; transform: scale(1.00666, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">2 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 156.4px; transform: scale(1.05137, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="142.09295849151613">The Mechanics of ROIC </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 646.087px; top: 156.24px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">3</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 653.367px; top: 156.799px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 652.807px; top: 156.24px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 171.519px; transform: scale(1.00116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="465.5559412689209">-
|
||
NOPAT
|
||
4</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 653.367px; top: 172.079px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 652.807px; top: 171.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 186.879px; transform: scale(0.996814, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="98.08645248107912">- Invested Capital </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 202.239px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 646.087px; top: 186.879px; transform: scale(1.00666, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">6 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 217.68px; transform: scale(1.05506, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="149.64269483642576">The Mechanics of WACC </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 233.04px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 646.087px; top: 217.519px; transform: scale(1.00666, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">8 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 248.4px; transform: scale(1.05509, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="185.20300846099855">The Mechanics of EVA & MVA </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 248.239px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">10 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 263.519px; transform: scale(0.999968, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="469.0014854263306">-
|
||
EVA
|
||
10 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 278.879px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.9934694259644">-
|
||
MVA
|
||
11 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 294.159px; transform: scale(0.996938, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="63.67109090881347">- Examples </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 309.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 294.159px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">12 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 325.039px; transform: scale(1.06006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="179.09748818206785">Competitive Advantage Period </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 340.319px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 324.879px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">16 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 355.679px; transform: scale(1.084, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="56.34981057434083">Summary</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 219.608px; top: 355.679px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 370.879px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 355.519px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">18 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 386.319px; transform: scale(1.06617, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="36.427377664184576">Myths</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 199.606px; top: 386.319px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 652.807px; top: 386.159px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 401.519px; transform: scale(1.00115, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="469.53989345092765">- Myth #1: Growth Is Good 18 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 416.879px; transform: scale(0.994071, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.5552614059449">- Myth #2: High Net Profit Margin Equals High Profitability 19 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 432.158px; transform: scale(0.995186, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.98144542541513">- Myth #3: ROE Is a Good Indicator of Performance 20 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 447.518px; transform: scale(0.996396, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.9867894256592">- Myth #4: What the Market Wants Is Profits 21 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.207px; top: 462.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 652.807px; top: 462.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 478.319px; transform: scale(1.05778, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="78.55813958892823">Shortcomings</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 241.688px; top: 478.319px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 493.518px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 478.158px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">21 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 509.039px; transform: scale(1.04912, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="63.89153091888429">Conclusion</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 227.047px; top: 509.039px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 524.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 508.878px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">22 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 539.678px; transform: scale(1.05358, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="84.47929185943603">Recommended</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 247.688px; top: 539.678px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 251.048px; top: 539.678px; transform: scale(1.05876, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="52.67313840637207">Readings</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 303.688px; top: 539.678px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 554.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.367px; top: 539.518px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">24 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 163.207px; top: 570.318px; transform: scale(1.05549, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="55.64173054199218">Appendix</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 218.888px; top: 570.318px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 639.368px; top: 570.158px; transform: scale(1.0062, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="16.820240768432615">25 </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.208px; top: 585.518px; transform: scale(1.00772, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.7423014144898">- NOPAT, Invested Capital and ROIC </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.208px; top: 600.798px; transform: scale(1.00384, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.89460542144775">-
|
||
EVA Model
|
||
</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 187.208px; top: 616.158px; transform: scale(0.996207, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="468.91464542236326">-
|
||
DCF Model
|
||
</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.569px; top: 632.238px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.009px; top: 631.678px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div></div></div><a name="3"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer3"><canvas height="1056" width="816" moz-opaque="" id="page3"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">2</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 95.04px; transform: scale(1.05746, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="106.76778087768555">INTRODUCTION</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 202.8px; top: 95.04px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 110.24px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 125.519px; transform: scale(0.998993, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="625.0369405548091">Prior to 2001 so-called momentum investors, tech investors and Internet investors have enjoyed enormous gains and </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 140.879px; transform: scale(0.997512, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="200.7326731704712">many received some very good press </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 310.8px; top: 140.879px; transform: scale(0.999101, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="203.2670652862549">about their performances. Now that th</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 525.36px; top: 140.879px; transform: scale(0.997547, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="186.32524851226808">e bubble has burst, many portfolio </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 156.239px; transform: scale(0.997956, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="303.8277898803712">managers, analysts and individual investors have been as</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 410.881px; top: 156.239px; transform: scale(0.997084, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="299.54056568450926">ked to question themselves about their beliefs about the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 171.519px; transform: scale(0.997648, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="202.60574525604247">market and the fundamentals of Secur</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 302.32px; top: 171.519px; transform: scale(1.00176, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="218.9690740036011">ity Analysis. Ironically, the one who has </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 526.32px; top: 171.519px; transform: scale(0.997413, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="193.315200831604">received the worst press during that </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 186.879px; transform: scale(1.00045, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="588.5841788894652">period, Warren Buffett, is yet again the one left standing and having the last laugh. Investors who have barely </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 202.239px; transform: scale(0.996983, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="125.85254174957275">survived the dot.com er</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 221.92px; top: 202.239px; transform: scale(0.995981, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="114.6207892364502">a have three choices: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 217.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 232.879px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">1.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 130px; top: 232.879px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 232.879px; transform: scale(0.997117, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="282.4998849060059">Capitulate (for individual investors, that would mean</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 439.76px; top: 232.879px; transform: scale(0.997603, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="265.9775721511842"> switch to index funds, fixed income securities or </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 248.239px; transform: scale(0.998208, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="126.78907779235837">invest in mutual funds) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 263.519px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">2.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 130px; top: 263.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 263.519px; transform: scale(0.996405, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="564.5628977920534">Stick to your beliefs, remain in denial, and continue hoping for another comeback, which would be either </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 278.879px; transform: scale(0.997763, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="318.23655053863524">very courageous or very stupid, depending on who you ask </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 294.159px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">3.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 130px; top: 294.159px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 294.159px; transform: scale(0.997398, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="311.8531422470092">Change your investment philosophy and continue to learn </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 309.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 324.879px; transform: scale(1.00532, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="601.7825234924317">Personally, I don’t like the first one, that’d be the easy way out. The second one would be... well let’s put it that </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 340.159px; transform: scale(1.00119, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="626.7443486328127">way, the worst thing that an investor can do at this point would be to show that s/he has learned nothing from his/her </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 355.519px; transform: scale(0.998652, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="322.03212671203613">mistakes, an attitude that we wouldn’t call a sign of intellige</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 425.601px; top: 355.519px; transform: scale(0.998181, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="289.4724692245484">nce. The last one, which seems to be the hardest, is in </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 370.879px; transform: scale(0.99855, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="190.22369669036868">fact the simplest one: “Get Back to </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 295.361px; top: 370.879px; transform: scale(1.01183, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="229.34712247772214">Basics: How Do You Value a Stock?” For </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 534.96px; top: 370.879px; transform: scale(0.997756, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="180.44417624359127">those who want an answer to this </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 386.158px; transform: scale(0.996074, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="222.32377015686038">question, this is what this report outlines. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 401.518px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 416.878px; transform: scale(0.998193, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="303.1678058502198">There are two classic ways to value a stock. The most co</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 402.161px; top: 416.878px; transform: scale(0.998999, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="319.0635345764159">mmonly used model is probably the one in which investors </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 432.158px; transform: scale(0.998536, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="207.74533749084475">project next year’s EPS (or cash flows,</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 305.44px; top: 432.158px; transform: scale(1.00108, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="413.9636269119264"> EBITDA, free cash flow, or sales) and assign a multiple to that number. The </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 447.518px; transform: scale(0.99866, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="613.6101320327756">second one is the good old Discounted Cash Flow (DCF) model. Finally, there is a more recent one, the Economic </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 462.878px; transform: scale(1.01054, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="252.6523075424194">Model or Economic Value Added model (EVA</div><div dir="ltr" style="font-size: 8px; font-family: serif; left: 352.48px; top: 464.24px; transform: scale(0.998933, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="11.9872">TM</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 364.4px; top: 462.88px; transform: scale(1.04937, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="35.20627360839844"> (EVA</div><div dir="ltr" style="font-size: 8px; font-family: serif; left: 400.24px; top: 464.24px; transform: scale(0.998933, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="11.9872">TM</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 412.16px; top: 462.88px; transform: scale(1.02883, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="57.06590660705566"> and MVA</div><div dir="ltr" style="font-size: 8px; font-family: serif; left: 470.56px; top: 464.24px; transform: scale(0.998933, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="11.9872">TM</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 482.56px; top: 462.88px; transform: scale(0.995949, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="235.9402827789307"> are trademarks of the consulting firm Stern </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 478.16px; transform: scale(0.999312, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="56.37786657562257">Stewart)). </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 493.52px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 508.88px; transform: scale(0.99802, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="206.02456941223141">After studying the practicality of each </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 319.04px; top: 508.88px; transform: scale(0.99793, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="199.33655310668948">model, we’ve come to the conclusion</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 532.56px; top: 508.88px; transform: scale(0.998292, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="173.88575194396978"> that the Economic Model is the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 524.16px; transform: scale(0.997346, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="308.4957740936279">valuation model that provides the best answers. Using mu</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 419.039px; top: 524.16px; transform: scale(0.997113, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="288.0990611618042">ltiples to value stocks is tricky since multiples are the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 539.52px; transform: scale(0.999124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="219.9737460494996">consequence (as oppose to being a value </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 320.399px; top: 539.52px; transform: scale(0.999203, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="200.6899211685181">driver or the measure of a value drive</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 525.599px; top: 539.52px; transform: scale(1.00043, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="192.5496727966309">r) of a sum of factors that affect the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 554.88px; transform: scale(1.00026, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="601.8560034957883">intrinsic value of a stock. It is an indirect way to perform a DCF or and EVA model, without actually evaluating </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 570.159px; transform: scale(0.999012, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="208.81012953948974">each value drivers. This method can be</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 310.08px; top: 570.159px; transform: scale(1.00208, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="207.86424149627683"> applied quite successfully, however it </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 523.28px; top: 570.159px; transform: scale(0.999029, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="194.7273528961182">takes a great deal of knowledge and </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 585.519px; transform: scale(0.997265, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="151.08557490234378">experience to be good at it. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 600.799px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 616.159px; transform: scale(1.00361, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="301.66747778167735">As for the DCF model, we should point that both EVA a</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 404.241px; top: 616.159px; transform: scale(1.00048, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="313.7849983352662">nd DCF will yield the same answer if performed properly. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 631.519px; transform: scale(1.00167, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="319.26660658569335">The reason why we choose the EVA model over the DCF is</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 425.28px; top: 631.519px; transform: scale(0.997081, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="151.39018291625976"> because the value drivers ar</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 581.201px; top: 631.519px; transform: scale(1.00371, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="138.5124783279419">e much easier to identify. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 646.799px; transform: scale(0.998204, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="316.1644144439698">For example, using a DCF alone is hard to evaluate whethe</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 424.161px; top: 646.799px; transform: scale(0.99799, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="157.10024717712403">r or not a company creates va</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 588.561px; top: 646.799px; transform: scale(0.995645, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="129.7656859283447">lue. In addition, there is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 662.159px; transform: scale(0.998545, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="579.3724584686281">more value attributed to the terminal value in a DCF model than in an EVA model, which is one of the most </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 677.519px; transform: scale(0.997482, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="307.80639806213384">criticized aspects of the DCF model. It should be pointed </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 404.001px; top: 677.519px; transform: scale(0.996971, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="319.1303345794678">out that the Economic Model (and DCF) takes into account </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 692.799px; transform: scale(0.996328, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="289.68222123413096">three of the most basic concepts of Security Analysis: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0004px; top: 708.159px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 723.519px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">1.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 130px; top: 723.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 723.519px; transform: scale(1.06012, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="25.99054518737793">Risk</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 170px; top: 723.519px; transform: scale(0.99724, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="194.79415289916994">: The opportunity cost of an investor</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 364.719px; top: 723.519px; transform: scale(0.99737, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="195.53429693298338"> and/or a company adjusted for risk. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 738.799px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">2.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 129.999px; top: 738.799px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.999px; top: 738.799px; transform: scale(1.08153, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="125.69222174224855">Capital Requirements</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 270.239px; top: 738.799px; transform: scale(0.997978, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="445.41440434875483">: The capital requirements represent how much capital must be invested in order to </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.999px; top: 754.159px; transform: scale(0.99926, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="90.13324411773682">generate profits. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 769.519px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="10.100160461425782">3.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 129.999px; top: 769.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.999px; top: 769.519px; transform: scale(1.05196, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="123.32482963409424">Time Value of Money</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 271.039px; top: 769.519px; transform: scale(0.997827, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="434.3042278411867">: The time value of money simply states that one dollar today is worth more than </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.999px; top: 784.799px; transform: scale(0.996957, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="311.6821342391968">one dollar tomorrow because of investment opportunities. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 800.159px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9991px; top: 815.518px; transform: scale(0.997784, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="200.7874491729736">None of these concepts are explicitly </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 303.599px; top: 815.518px; transform: scale(0.997599, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="198.20629705505362">taken into account in EPS, P/E ratio, </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 509.838px; top: 815.518px; transform: scale(1.0001, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="207.22162546691894">PEG ratio or growth. In the Economic </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 830.798px; transform: scale(1.00056, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="285.54195704498284">Model however, risk is taken into account by the cost</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 401.757px; top: 830.798px; transform: scale(0.997151, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="152.87982298431396"> of capital, capital requireme</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 563.678px; top: 830.798px; transform: scale(0.999468, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="148.43762278137208">nts are accounted for in the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 846.158px; transform: scale(0.998608, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="624.7790925430294">denominator of the ROIC formula, and the time value of money is considered when economic profits are discounted </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 861.518px; transform: scale(1.00431, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="238.38917089080817">to calculate the market value added (MVA). </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 876.798px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 892.158px; transform: scale(0.998005, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="273.86932451171873">In this report, we will outline the basic concepts of </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 371.838px; top: 892.158px; transform: scale(1.01971, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="349.81023998107906">the Economic Model: ROIC, WACC, EVA, MVA and CAP. We </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 907.438px; transform: scale(0.99583, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="311.3628302246093">believe that knowing how to calculate these figures is just </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 410.878px; top: 907.438px; transform: scale(0.995695, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="308.7482781051636">as important as knowing how to calculate the P/E ratio of </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9978px; top: 922.798px; transform: scale(1.01128, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="68.21081911621094">a company. </div></div></div><a name="4"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer4"><canvas height="1056" width="816" moz-opaque="" id="page4"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">3</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.56px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0002px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">T</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 105.44px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">H</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 104.881px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">H</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 115.841px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 115.281px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 124.722px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 124.162px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 128.082px; top: 95.5999px; transform: scale(1.0613, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.611840576171875">M</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 127.522px; top: 95.0401px; transform: scale(1.0613, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="12.611840576171875">M</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 140.721px; top: 95.5999px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 140.162px; top: 95.0401px; transform: scale(1.09116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.911120407104493">E</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 149.522px; top: 95.5999px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 148.962px; top: 95.0401px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 159.202px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">H</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 158.643px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">H</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 169.523px; top: 95.5999px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">A</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 168.963px; top: 95.0401px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">A</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 179.204px; top: 95.5999px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 178.644px; top: 95.0401px; transform: scale(0.999577, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">N</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 188.884px; top: 95.5999px; transform: scale(1.16787, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.197040237426758">I</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 188.324px; top: 95.0401px; transform: scale(1.16787, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.197040237426758">I</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 194.005px; top: 95.5999px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 193.445px; top: 95.0401px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 203.686px; top: 95.5999px; transform: scale(0.999304, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.428160339355469">S</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 203.126px; top: 95.0401px; transform: scale(0.999304, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="7.428160339355469">S</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 211.046px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 210.486px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 214.406px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 213.846px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 224.807px; top: 95.5999px; transform: scale(1.09816, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.162960372924804">F</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 224.247px; top: 95.0401px; transform: scale(1.09816, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="8.162960372924804">F</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 232.887px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 232.327px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 236.247px; top: 95.5999px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">R</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 235.687px; top: 95.0401px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">R</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 245.847px; top: 95.5999px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 245.288px; top: 95.0401px; transform: scale(1.07711, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.394080474853515">O</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 256.248px; top: 95.5999px; transform: scale(1.16787, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.197040237426758">I</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 255.688px; top: 95.0401px; transform: scale(1.16787, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="5.197040237426758">I</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 261.448px; top: 95.5999px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 260.888px; top: 95.0401px; transform: scale(1.08179, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="9.645920440673828">C</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 271.12px; top: 95.5999px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 270.56px; top: 95.0401px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 110.4px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 125.52px; transform: scale(0.996759, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="296.12040552825925">Return on invested capital (ROIC) is one of the most fu</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 403.679px; top: 125.52px; transform: scale(0.996567, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="311.576590234375">ndamental financial metrics. But despite its importance, it </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 140.88px; transform: scale(0.998704, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="324.0628468048095">does not receive the same kind of press coverage as earnings</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 420.16px; top: 140.88px; transform: scale(0.999525, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="303.18918185119634"> per share (EPS), return on equity (ROE), and EBITDA, </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 156.24px; transform: scale(1.00021, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="213.29374574432367">or operating margin. One reason is prob</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 315.599px; top: 156.24px; transform: scale(0.997282, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="160.69542334136963">ably because you cannot obtai</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 480.479px; top: 156.24px; transform: scale(0.997515, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="120.03426148376465">n ROIC straight out of</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 604.88px; top: 156.24px; transform: scale(0.997754, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="116.321517314148"> financial statements. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 171.519px; transform: scale(0.99707, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="315.755598425293">When coupled with the weighed average cost of capital (W</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 415.119px; top: 171.519px; transform: scale(0.999007, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="305.67948596496564">ACC), ROIC becomes one of the most important drivers </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 186.879px; transform: scale(0.99827, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="208.28908951568604">to value creation. The cost of capital re</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 308.32px; top: 186.879px; transform: scale(0.998629, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="205.41802538452157">presents the minimum rate of return (a</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 517.199px; top: 186.879px; transform: scale(0.99808, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="202.74335326232907">djusted for risk) that a company must </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 202.239px; transform: scale(0.998371, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="327.28260695190437">earn to create value for shareholders and debt holders. ROIC </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 430.399px; top: 202.239px; transform: scale(0.996815, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="286.1191090713502">is measured against the cost of capital, which is what </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 217.519px; transform: scale(0.996731, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="198.3826490631104">makes it such an important concept. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 232.879px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 248.239px; transform: scale(1.04919, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="61.55219481201173">Definition:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 157.52px; top: 248.239px; transform: scale(1.00066, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="263.0744440185547"> ROIC shows a company’s cash rate of return on </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 447.119px; top: 248.239px; transform: scale(0.996494, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="257.49397176361083">capital (regardless of the capital structure of the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9998px; top: 263.519px; transform: scale(0.996751, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="153.23386300048827">company) it has put to work.</div><div dir="ltr" style="font-size: 8.64px; font-family: serif; left: 249.36px; top: 262.24px; transform: scale(1.00077, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.320000171661377">1</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 253.68px; top: 263.52px; transform: scale(0.996048, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="350.227072000122"> It is the true metric to measure the cash-on-cash return of a firm. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9999px; top: 278.88px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9999px; top: 294.32px; transform: scale(1.09872, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="57.536178628540036">Formula: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9999px; top: 309.68px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 222.8px; top: 343.2px; transform: scale(1.00059, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="36.054718677520746">Capital</div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 219.84px; top: 343.2px; transform: scale(1.00107, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.119999885559082"> </div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 175.759px; top: 343.2px; transform: scale(1.00116, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="42.28223844909668">Invested</div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 144.32px; top: 343.2px; transform: scale(1.0561, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="30.151678894042966">AVG </div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 180.8px; top: 325.44px; transform: scale(1.06383, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="41.595838474273684">NOPAT</div><div dir="ltr" style="font-size: 12.48px; font-family: serif; left: 98px; top: 333.359px; transform: scale(0.999376, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="29.81471890640259">ROIC</div><div dir="ltr" style="font-size: 12.48px; font-family: sans-serif; left: 132.64px; top: 333.359px; transform: scale(0.977006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_9" data-canvas-width="6.839039749145508">=</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 264px; top: 328.08px; transform: scale(0.997107, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="94.60884432220458"> or </div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 478.32px; top: 343.172px; transform: scale(1.00146, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="36.13599604797363">Capital</div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 475.441px; top: 343.172px; transform: scale(0.997989, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.127033233642578"> </div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 431.841px; top: 343.172px; transform: scale(1.00065, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="42.37755438232422">Invested</div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 428.802px; top: 343.172px; transform: scale(0.997989, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.127033233642578"> </div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 405.842px; top: 343.172px; transform: scale(1.00047, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="23.27763539123535">Beg.</div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 439.282px; top: 325.411px; transform: scale(1.06532, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="41.689607070922854">NOPAT</div><div dir="ltr" style="font-size: 12.5081px; font-family: serif; left: 360.482px; top: 333.332px; transform: scale(1.00051, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="29.881929580688478">ROIC</div><div dir="ltr" style="font-size: 12.5081px; font-family: sans-serif; left: 394.482px; top: 333.332px; transform: scale(0.856807, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_9" data-canvas-width="6.854456848144531">=</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 519.04px; top: 328.08px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9996px; top: 360.32px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 375.68px; transform: scale(1.02233, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="145.68145465545655">Where NOPAT: Net Opera</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 265.519px; top: 375.68px; transform: scale(1.00589, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="130.6314139678955">ting Profits After-Taxes </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9996px; top: 390.96px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9996px; top: 406.32px; transform: scale(1.11867, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="89.28889207916261">Interpretation: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 188.24px; top: 406.32px; transform: scale(0.998489, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="243.1653711090088">When compared to the weighted average cost</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 449.68px; top: 406.32px; transform: scale(1.00416, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="252.41182753143315"> of capital (WACC), ROIC can help determine </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9996px; top: 421.6px; transform: scale(0.998141, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="215.29908183593747">whether or not a company creates value </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 314.799px; top: 421.6px; transform: scale(0.997614, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="190.3947046981812">for its shareholders. If the ROIC of </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 508.878px; top: 421.6px; transform: scale(1.0057, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="211.02922564086913">a company is higher than its WACC, it </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 436.96px; transform: scale(0.99736, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="154.07554303894042">means that the company is a </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 253.199px; top: 436.96px; transform: scale(1.00249, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="463.45174117279055">value creator. The ROIC-WACC spread is one of the most important metrics to assess </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 452.32px; transform: scale(1.0005, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="285.1772290283203">the quality of a company. A higher spread also explai</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 388.719px; top: 452.32px; transform: scale(0.997312, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="326.2538869049073">ns why a company like Coca-Cola will trade at a “premium” </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 467.6px; transform: scale(0.99922, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="318.3180465423585">multiple over the rest of the market. In today’s market, ever</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 421.519px; top: 467.6px; transform: scale(0.99441, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="293.96410142974855">ybody talks about growth, but the fact is that growth is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 482.96px; transform: scale(0.996408, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="193.88433685760498">good only if a company is a value cr</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 302.318px; top: 482.96px; transform: scale(1.00002, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="201.6037452102661">eator. Because if a company destroys </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 513.278px; top: 482.96px; transform: scale(0.9966, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="202.4427532485962">value, growing will only make things </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 498.32px; transform: scale(1.00124, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="38.647809765625006">worse. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 513.6px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 528.96px; transform: scale(1.05897, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="65.25024298095705">Mechanics:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 161.198px; top: 528.96px; transform: scale(0.998318, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="509.7909032897949"> There are two components in the ROIC formula. The first one is net operating profits after-tax </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 544.32px; transform: scale(1.00152, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="569.3805140121461">(NOPAT) and the second one is invested capital (IC). The difficulty in calculating ROIC is that it requires </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 559.599px; transform: scale(0.997815, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="619.9093723205567">adjustments to be made from the financial statements. More important than knowing how to make adjustments is to </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9983px; top: 574.959px; transform: scale(0.996257, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="417.2488510620117">know why they are being made. The following section addresses these issues. </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 924.96px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="192"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 288px; top: 924.96px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 8.64px; font-family: serif; left: 96px; top: 942.24px; transform: scale(1.00077, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.320000171661377">1</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 100.32px; top: 943.52px; transform: scale(0.997868, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="122.27206158599854"> Michael Mauboussin, </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 222.56px; top: 943.52px; transform: scale(1.02176, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="185.17762445983888">Plus Ça Change, Plus C’est Pareil</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.4px; top: 943.52px; transform: scale(1.00042, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="128.9547338912964">, CS First Boston, pp 6. </div></div></div><a name="5"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer5"><canvas height="1056" width="816" moz-opaque="" id="page5"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">4</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 95.04px; transform: scale(1.0804, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="246.45727525939944">NOPAT (Net Operating Profits After-Tax) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 110.4px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 125.519px; transform: scale(1.00968, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="228.55754644165032">NOPAT is operating profit free from any e</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 326.48px; top: 125.519px; transform: scale(1.01323, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="207.2897614700317">ffects of the capital structure. NOPAT </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 535.36px; top: 125.519px; transform: scale(0.997137, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="185.88303249206547">is one of the best ways to measure </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 140.879px; transform: scale(0.998952, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="332.31799118194584">the cash generated by a company’s operations as it takes away</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 430.8px; top: 140.879px; transform: scale(0.999439, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="82.88677978668214"> the effects of n</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 514.72px; top: 140.879px; transform: scale(0.99526, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="115.30081326751709">on-operating items su</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 630.639px; top: 140.879px; transform: scale(0.998807, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="92.35634821929932">ch as investment </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 156.239px; transform: scale(0.998133, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="313.99608634490966">income, non-recurring charges and goodwill amortization. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.799px; top: 156.239px; transform: scale(1.00871, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="297.31746158294675">There are two ways to calculate NOPAT: the operating </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 171.519px; transform: scale(0.994943, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="314.733558378601">and the financing approach. In this report, we will focus on</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.159px; top: 171.519px; transform: scale(0.995057, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="301.85050979003904"> the operating approach because we believe it is the best </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 186.879px; transform: scale(0.997799, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="417.61224307861346">perspective for investors to appreciate the factors that affect operating profits. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 202.239px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 217.679px; transform: scale(1.13105, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="54.55422649230956">NOPAT: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 232.879px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 248.399px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.100160461425782">1.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 105.999px; top: 248.399px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p4_8" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 248.399px; transform: scale(1.07323, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="54.180146475219736">Calculate</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 174.079px; top: 248.399px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 177.439px; top: 248.399px; transform: scale(1.05872, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="257.6569637710571">Net Operating Profit Before Taxes (NOPBT) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 263.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 278.879px; transform: scale(0.996897, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="59.24893070678712">Start with: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 294.159px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 151.519px; top: 294.159px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 294.159px; transform: scale(0.997979, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="31.502881439208984">Sales </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 309.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 324.879px; transform: scale(0.999768, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="44.57297003631592">Minus: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 340.159px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 340.159px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 340.159px; transform: scale(0.999141, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="103.1779487136841">Cost of goods sold </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 355.519px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 355.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 355.519px; transform: scale(0.998217, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="172.7247678909302">Selling and marketing expenses </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 370.879px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 370.879px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 370.879px; transform: scale(0.997371, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="199.2082971008301">General and administrative expenses </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 386.158px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 386.158px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 386.158px; transform: scale(1.00053, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="32.33387347717285">R&D </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 401.518px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 401.518px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 401.518px; transform: scale(0.999702, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="72.36177130584716">Depreciation </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 416.878px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 416.878px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 416.878px; transform: scale(0.999999, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="139.21655036010742">Other operating expenses </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 432.158px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 432.158px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 432.158px; transform: scale(1.01548, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="261.35100393981924">(Ignore expenses such as non-recurring charges,</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 439.999px; top: 432.158px; transform: scale(0.994154, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="270.59211636199956"> amortization of goodwill, stock options, non-cash </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 447.518px; transform: scale(1.01008, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="191.98320877075193">items, acquired in-process R&D...) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 462.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 478.158px; transform: scale(1.0002, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="58.678458680725086">Add back: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.998px; top: 493.518px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.478px; top: 493.518px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.998px; top: 493.518px; transform: scale(0.996368, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="291.9026533355713">Amortization of goodwill (if included in depreciation) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 508.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9987px; top: 524.318px; transform: scale(1.00834, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.100160461425782">2.</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 105.999px; top: 524.318px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p4_8" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 524.318px; transform: scale(1.08969, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="151.50374292144772">Subtract Operating Taxes </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 119.999px; top: 539.518px; transform: scale(0.999812, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="157.50371919555664">There are two ways to charge</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 277.358px; top: 539.518px; transform: scale(0.997879, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="165.647975567627"> NOBPT with operating taxes: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9973px; top: 554.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.997px; top: 570.158px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.477px; top: 570.158px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 570.158px; transform: scale(1.0144, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="164.9919995376587">NOPAT = NOPBT x (1-CTR) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 585.518px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 600.797px; transform: scale(0.997567, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="541.6625207458496">Make an assumption: establish a cash tax rate (CTR) equal to the effective tax rate as reported on the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 616.157px; transform: scale(0.997259, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="265.9855881515503">income statement and if the effective tax rate is ar</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 434.236px; top: 616.157px; transform: scale(0.999814, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="289.0462852050781">tificially low, establish a tax rate somewhere between </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 631.517px; transform: scale(0.999267, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="60.08927474517822">35%-40%. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.997px; top: 646.797px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 143.997px; top: 662.157px; transform: scale(0.999748, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4.448880203247071">-</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 148.477px; top: 662.157px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 662.157px; transform: scale(1.01294, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="237.5180988510132">NOPAT = NOPBT – Cash Operating Taxes </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 677.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 692.797px; transform: scale(0.997703, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="274.5012525405884">Cash operating taxes can be calculated as follows: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9973px; top: 708.157px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9973px; top: 723.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9973px; top: 738.797px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 95.9973px; top: 754.157px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 769.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 617.838px; top: 769.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 784.797px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 800.157px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 815.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 830.797px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 846.157px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 861.517px; transform: scale(0.999706, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="346.64792783660886">With cash operating taxes, you can calculate the effective CTR: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 876.796px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 191.997px; top: 892.156px; transform: scale(0.996611, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="260.6469319076538">Cash operating tax paid/NOPBT = Cash tax rate </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 907.436px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 922.796px; transform: scale(0.99996, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="276.3556206253052">This cash tax rate can be used as the effective CTR,</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 450.878px; top: 922.796px; transform: scale(0.998771, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="265.706364138794"> unless it is too low compared to the effective tax </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 167.997px; top: 938.156px; transform: scale(1.01194, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="99.92879656524657">rate under GAAP. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 728.316px; transform: scale(0.99783, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="157.59055919952394">+ Provision for income taxes </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 748.316px; transform: scale(0.995546, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="193.4180728363037">+ Add change in deferred tax assets </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 768.316px; transform: scale(1.00035, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="372.8308570327758">+ Add tax shield from interest expense (Interest Expense x Tax Rate) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 788.316px; transform: scale(0.99677, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="230.56956253356935">- Subtract change in deferred tax liabilities </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 808.316px; transform: scale(0.999623, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="399.1994902374266">- Subtract tax paid on investment income (Investment Income x Tax Rate) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 172.797px; top: 831.356px; transform: scale(1.00415, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="10.928480499267579">= </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 183.758px; top: 831.356px; transform: scale(0.997952, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="111.15520507812501">Cash operating taxes</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 294.878px; top: 831.356px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div></div></div><a name="6"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer6"><canvas height="1056" width="816" moz-opaque="" id="page6"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">5</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 95.04px; transform: scale(1.07127, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="182.59780834198">Justifications and Calculations: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 110.24px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 125.519px; transform: scale(1.07171, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="183.4234563796997">Non-recurring Costs (or Gains):</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 282.16px; top: 125.519px; transform: scale(0.998106, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="142.27999850006103"> Non-recurring costs were </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 428px; top: 125.519px; transform: scale(0.99776, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="138.17313431243898">ignored from the calculati</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 568.88px; top: 125.519px; transform: scale(1.01924, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="151.25524691009522">on of NOPAT because they </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 140.879px; transform: scale(0.997066, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="328.716135017395">do not represent operating costs. Non-recurring costs include:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 430.72px; top: 140.879px; transform: scale(0.998232, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="286.65885309600833"> merger and acquisition related costs, litigation costs, </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 156.239px; transform: scale(0.997118, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="182.12352832031252">and costs from extraordinary even</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 278.24px; top: 156.239px; transform: scale(0.998974, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="171.34067182769772">ts. Non-recurring gains are also </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 449.28px; top: 156.239px; transform: scale(0.996504, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="162.7956154373169">subtracted from the equation. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 171.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 186.879px; transform: scale(1.04888, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="150.34008686828614">Amortization of Goodwill:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 249.76px; top: 186.879px; transform: scale(0.996189, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="220.09131405487065"> Goodwill arises from the accounting for </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 481.841px; top: 186.879px; transform: scale(0.996402, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="231.2482505645751">acquisitions. Goodwill amortization is non-</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 202.239px; transform: scale(0.997445, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="606.0310036865234">cash, non-tax deductible and non-operating item, therefore a non-factor when it comes to business operations. To </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 217.519px; transform: scale(0.997297, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="288.2353331680296">cancel this effect, goodwill amortization is ignored in </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 400.561px; top: 217.519px; transform: scale(1.00563, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="302.3755578140259">the NOPAT calculation or added back to NOPBT if it is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 232.879px; transform: scale(0.997574, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="223.72256222076416">included in the same line as depreciation. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 248.239px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 263.519px; transform: scale(1.08864, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="92.37104421997068">Cash Tax Rate: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 189.842px; top: 263.519px; transform: scale(0.998933, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="525.9217680267335">By establishing a cash tax rate or by calculating the actual cash operating taxes, we have removed </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 278.879px; transform: scale(0.995227, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="618.2847962463378">from the equation all taxes that were paid on investment income and the tax shield that was provided by the interest </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 294.159px; transform: scale(0.998006, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="310.62936619110104">expenses. In some cases, companies may be charged with </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 414.001px; top: 294.159px; transform: scale(0.997357, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="302.1658058044434">a cash operating tax while they have actually never paid </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 309.519px; transform: scale(1.00421, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="598.2915553329466">taxes under GAAP due to the tax shield provided by interest expense. However, with NOPAT, our goal is to de-</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 324.879px; transform: scale(0.998772, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="580.0204184982299">leverage the company and make no discrimination as to whether or not the company is debt financed or not. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 340.159px; transform: scale(0.997664, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="571.7278661193848">Therefore we charge all companies with positive NOPBT with taxes. The tax shield from debt financing is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 355.519px; transform: scale(0.997134, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="179.16829618530275">incorporated in the weighted aver</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 275.202px; top: 355.519px; transform: scale(0.994719, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="170.66064779663088">age cost of capital as it uses the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 446.162px; top: 355.519px; transform: scale(1.00307, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="111.07370907440186">after-tax cost of debt</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 556.881px; top: 355.519px; transform: scale(1.0055, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836">. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 370.879px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 386.158px; transform: scale(0.996322, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="621.5058923934938">Beware, sometimes the cash operating tax paid may be lower than usual (due to timing of deferred taxes). If it is the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 401.518px; transform: scale(0.997207, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="475.75095773468">case, we suggest that investors choose the most conservative approach (highest tax rate). </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 417.039px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 432.158px; transform: scale(1.06893, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="256.1860277038574">Interest Expenses and Tax Shield from Debt:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 352.321px; top: 432.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 355.681px; top: 432.158px; transform: scale(1.01213, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="150.0982708572388">read above (Cash Tax Rate)</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 505.841px; top: 432.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 447.518px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 462.878px; transform: scale(1.07431, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="177.69068011779785">Investment Income and Tax Pa</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 275.441px; top: 462.878px; transform: scale(1.06135, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="145.42227064361566">id on Investment Income:</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 422.16px; top: 462.878px; transform: scale(0.996111, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="297.7209336013794"> Investment income (and the related taxes) was ignored </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 478.158px; transform: scale(1.01243, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="180.71805625610352">in our NOPAT calculation simply</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 278.32px; top: 478.158px; transform: scale(0.996897, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="212.82080172271725"> because it does not represent an operati</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 494.08px; top: 478.158px; transform: scale(1.00187, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="225.52081830291752">ng item. We do not buy a company for its </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 493.518px; transform: scale(0.996599, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="323.42958277587894">ability to generate income on its cash balance. This assumpti</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 422.56px; top: 493.518px; transform: scale(0.998572, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="298.1070376190186">on allows us to remove all cash balances from Invested </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 508.878px; transform: scale(0.996558, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="281.59407686462396">Capital and keep cash value neutral in the equation. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 524.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 539.678px; transform: scale(1.06684, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="134.58196614837647">Conclusion on NOPAT </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 554.878px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 570.158px; transform: scale(1.0034, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="211.63443366851808">We are now able to calculate the numer</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 331.28px; top: 570.158px; transform: scale(0.997499, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="351.1863200439454">ator in the ROIC formula. It is very important to mention that the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 585.518px; transform: scale(1.0025, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="615.198636105347">adjustments made in calculating NOPAT are not limited to those we’ve listed; not included here are: LIFO reserve </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 600.797px; transform: scale(0.998094, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="505.81763910827607">and full-cost reserve among others, for a more in-depth analysis, we recommend that you read </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 607.68px; top: 600.797px; transform: scale(0.996497, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="107.65488491821289">The Quest for Value</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 716.64px; top: 600.797px; transform: scale(1.0055, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836">. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 616.157px; transform: scale(0.997145, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="329.1409830368042">The reason why some adjustments were not included is becau</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 430.321px; top: 616.157px; transform: scale(0.99618, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="287.7797571472168">se we found them to be very counterproductive and it </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 631.517px; transform: scale(0.99696, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="180.2504562347412">beats the purpose of the exercise. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 646.797px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 662.157px; transform: scale(1.00358, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="620.9648123687742">It is important to understand that NOPAT calculates the profits generated from the operations of a company. This is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 677.517px; transform: scale(0.998126, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="562.5602337005612">why we’ve taken any debt-related issues, investment income as well as non-recurring costs and goodwill </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 692.797px; transform: scale(0.999036, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="627.4444126647955">amortization out of the equation. However, we did not remove depreciation from the picture since it represents a true </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 708.157px; transform: scale(0.98331, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="51.09933033447265">economic</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 147.119px; top: 708.157px; transform: scale(0.997454, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="346.6652958374024"> expense whereby firms have to replenish their PP&E over time. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 723.677px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 738.957px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div></div></div><a name="7"></a><div data-loaded="true" style="width: 816px; height: 1056px;" class="page" id="pageContainer7"><canvas height="1056" width="816" moz-opaque="" id="page7"></canvas><div class="textLayer"><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 47.04px; transform: scale(1.04253, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="221.01582609710698">The Mechanics of the Economic Model</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 317.12px; top: 47.04px; transform: scale(1.003, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.720080307006836"> </div><div dir="ltr" style="font-size: 16px; font-family: serif; left: 96px; top: 988.32px; transform: scale(1, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="4"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 713.28px; top: 988.56px; transform: scale(0.999501, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="6.680000305175781">6</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 95.04px; transform: scale(1.0605, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="158.72081525115968">INVESTED CAPITAL (IC)</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 254.561px; top: 95.04px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 110.24px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 125.519px; transform: scale(1.00014, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="612.8165479965207">Invested capital is the amount of all cash that has been invested in the company’s business since its inception. It is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 140.879px; transform: scale(0.996395, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="317.086254486084">important to note that many of the adjustments we’ve made</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.4px; top: 140.879px; transform: scale(1.00556, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="303.5605898681641"> to calculate NOPAT will affect invested capital as well. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 156.239px; transform: scale(0.997952, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="314.2218703552246">IC can be calculated in two ways: with the operating appro</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 413.039px; top: 156.239px; transform: scale(0.998938, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="308.1724620788575">ach or the financing approach. Here we use the operating </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 171.519px; transform: scale(0.996268, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="125.74566174468995">approach for the same r</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 221.841px; top: 171.519px; transform: scale(1.02425, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="121.66418155822754">eason as for NOPAT: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 187.04px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 202.239px; transform: scale(1.07511, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="93.8032362854004">Invested Capital</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 189.76px; top: 202.239px; transform: scale(0.995225, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="44.35386602630616"> equals: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 217.519px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 232.879px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 232.879px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 232.879px; transform: scale(0.996072, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="109.103108984375">Net working capital </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 248.239px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 248.239px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 248.239px; transform: scale(1.00314, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="177.923144128418">Net property, plant & equipment </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 263.519px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 263.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 263.519px; transform: scale(1.00012, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="122.1651815811157">Other operating assets </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 278.879px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 278.879px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 278.879px; transform: scale(0.996975, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="225.43264229888925">Operating L-T investments (unless they ar</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 369.599px; top: 278.879px; transform: scale(0.996986, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="213.58766575775144">e long-term low-risk income securities) </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 294.159px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 294.159px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 294.159px; transform: scale(0.997394, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="85.19405189208985">Gross goodwill </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 309.519px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 309.519px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 309.519px; transform: scale(0.996369, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="116.89065334014894">Unrecorded goodwill </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 324.879px; transform: scale(1.00023, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="7.535040344238282">+</div><div dir="ltr" style="font-size: 13.36px; font-family: monospace; left: 127.52px; top: 324.879px; transform: scale(0.46426, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p2_5" data-canvas-width="3.7140801696777346"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 144px; top: 324.879px; transform: scale(0.997245, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="172.17433586578372">Cumulative non-recurring costs </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 120px; top: 340.159px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 355.679px; transform: scale(1.06723, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="78.86809160308837">Justifications </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 174.88px; top: 355.679px; transform: scale(1.07258, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="95.97824438476563">and Calculations</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 270.88px; top: 355.679px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 370.879px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 386.158px; transform: scale(1.07049, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="169.36873573760985">Net Working Capital (NWC):</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 268.8px; top: 386.158px; transform: scale(0.997551, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="441.8820201873781"> NWC is defined as operating assets minus operating liabilities (a.k.a. non-interest </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 401.518px; transform: scale(0.998812, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="619.7129803115848">bearing current liabilities or NIBCLs). Note that cash and equivalents and S-T investments are not operating assets. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 416.878px; transform: scale(0.998681, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="183.94048840332036">Any interest bearing debt is not co</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 279.68px; top: 416.878px; transform: scale(1.00034, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="192.03264077301029">nsidered operating liabilities either. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 432.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 447.518px; transform: scale(0.996968, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="302.1310698028565">This item should be studied with greater attention as it is</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 408.16px; top: 447.518px; transform: scale(0.999403, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="307.2332540359496"> directly related to balance sheet management. In today’s </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 462.878px; transform: scale(0.997882, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="608.3756837936405">income statement centric world, investors tend to underestimate the importance of managing operating assets and </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 478.158px; transform: scale(0.996214, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="59.573578721618645">liabilities. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 493.518px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 508.878px; transform: scale(0.99848, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="314.55453437042235">NWC will affect ROIC as it is a major component of IC. If</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 421.76px; top: 508.878px; transform: scale(0.997451, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="152.19445495300292"> operating assets increase, in</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 577.6px; top: 508.878px; transform: scale(0.997861, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="142.9934225326538">vested capital increases as </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 524.158px; transform: scale(1.00071, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="287.7864371475219">well, which in turn lowers the ROIC. However, if ope</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 396.16px; top: 524.158px; transform: scale(0.998893, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="169.86171976013185">rating liabilities increase, ROIC</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 570.001px; top: 524.158px; transform: scale(0.997211, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="147.7201907485962"> increases because NWC is </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 539.518px; transform: scale(0.999009, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="321.24789467620855">lower. As you can see, investors must overcome the myth th</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 429.682px; top: 539.518px; transform: scale(0.996402, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="281.20129284667973">at assets are a good thing and that liabilities are bad. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 554.878px; transform: scale(1.00033, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="218.45604998016358">That’s why it is important for firms to co</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 314.562px; top: 554.878px; transform: scale(0.996831, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="227.24425838165277">ntrol their inventories and receivables and </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 541.922px; top: 554.878px; transform: scale(0.995419, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="181.14958427581783">to keep them as low as possible. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 570.158px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 585.518px; transform: scale(0.99937, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="317.2666144943237">These things can only be observed when investors focus on</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 420.482px; top: 585.518px; transform: scale(0.999443, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="294.81914146881104"> the balance sheet (and the cash flow statement). Tools </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 600.797px; transform: scale(0.999012, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="290.8124772857666">such as the flow ratio and the cash conversion cycle m</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 395.523px; top: 600.797px; transform: scale(0.999128, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="321.6193026931762">easure working capital management. Changes in NWC also </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 616.157px; transform: scale(0.999494, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="294.93403747406006">affect cash flows in the same way that it affects ROIC. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 397.363px; top: 616.157px; transform: scale(1.00074, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="321.2545746765137">When operating liabilities increase, it creates a cash inflow. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 631.517px; transform: scale(0.997867, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="155.94995112457272">When operating assets increa</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 251.923px; top: 631.517px; transform: scale(1.00369, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="144.46435859985348">se, there is a cash outflow. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 646.958px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 662.318px; transform: scale(1.03715, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="91.66697218780517">Gross Goodwill </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 677.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 692.797px; transform: scale(1.00923, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="320.3634626358033">In NOPAT, we’ve ignored amortization of goodwill, howev</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 431.202px; top: 692.797px; transform: scale(0.999739, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="270.87935637512203">er a company can not get away with this so easily. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0027px; top: 708.157px; transform: scale(0.998332, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="97.80322046813964">Therefore, we are </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 196.722px; top: 708.157px; transform: scale(0.999216, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p3_17" data-canvas-width="58.98707469482422">penalizing </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 256.562px; top: 708.157px; transform: scale(0.996393, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="454.77041277618406">the company by keeping goodwill amortization in the books by using gross goodwill </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 723.517px; transform: scale(1.00122, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="299.8972777008057">instead of net goodwill in Invested Capital. Anyway, as </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 399.761px; top: 723.517px; transform: scale(0.99808, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="320.56653464508054">companies start applying the new goodwill rule, companies </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 738.797px; transform: scale(0.996995, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="308.02149407196043">will start reporting goodwill on the balance sheet on a gro</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 419.761px; top: 738.797px; transform: scale(0.997228, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="291.0743332977295">ss basis, as goodwill amortization will not be required </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 754.157px; transform: scale(0.996693, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="49.93433828124999">anymore.</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 146.001px; top: 754.157px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 769.677px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 784.797px; transform: scale(0.996975, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="609.3509638381956">In the past, we’ve had several discussions about whether or not we should include goodwill in Invested Capital or </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 800.157px; transform: scale(1.00189, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="318.55051055297866">not. Mathematically, it doesn’t make a difference from valu</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 416.082px; top: 800.157px; transform: scale(0.999375, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="305.6420779632569">ation standpoint. However, if goodwill is not included in </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 815.517px; transform: scale(0.99724, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="301.4323417709351">Invested Capital, ROIC will be artificially high, making </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 406.561px; top: 815.517px; transform: scale(0.996086, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="307.3588380416871">your initial assessment of the value creation capability of </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 830.797px; transform: scale(1.00273, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="208.1501455093384">the company flawed. We want to be co</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 304.722px; top: 830.797px; transform: scale(0.997049, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="222.09264214630127">nservative in our approach. If a company </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 527.521px; top: 830.797px; transform: scale(1.00274, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="195.35126492462157">overpaid for a company, it has to be </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 846.157px; transform: scale(0.998649, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="102.32825267486572">reflected in ROIC. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 861.517px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96.0013px; top: 876.796px; transform: scale(1.05696, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_1" data-canvas-width="131.06294198760983">Unrecorded Goodwill: </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 229.361px; top: 876.796px; transform: scale(0.995462, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="245.43122721252442">This item is a bit more complicated. Unrecord</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 483.041px; top: 876.796px; transform: scale(0.99424, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="232.950314642334">ed goodwill arises when companies use the </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 892.156px; transform: scale(0.998978, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="308.001454071045">pooling of interests method to account for mergers and ac</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 423.52px; top: 892.156px; transform: scale(0.998014, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="157.88581521301268">quisitions. Under this method</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 587.921px; top: 892.156px; transform: scale(0.997934, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="126.72094178924561">, the cost recognized to </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 907.436px; transform: scale(0.999953, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="618.7377002670287">acquire a company is merely its book value. Any premium paid vanishes from the balance sheet. However, the true </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 922.796px; transform: scale(0.996257, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="305.5685979598999">cost of the buying company equals the market value of th</div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 401.92px; top: 922.796px; transform: scale(0.995348, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="283.4751649505616">e securities issued at the time of the transaction date. </div><div dir="ltr" style="font-size: 13.36px; font-family: serif; left: 96px; top: 938.156px; transform: scale(0.997015, 1); transform-origin: 0% 0% 0px;" data-font-name="g_font_p0_2" data-canvas-width="3.3400001525878906"> </div></div></div><a name="8"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer8"><div class="loadingIcon"></div></div><a name="9"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer9"><div class="loadingIcon"></div></div><a name="10"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer10"><div class="loadingIcon"></div></div><a name="11"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer11"><div class="loadingIcon"></div></div><a name="12"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer12"><div class="loadingIcon"></div></div><a name="13"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer13"><div class="loadingIcon"></div></div><a name="14"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer14"><div class="loadingIcon"></div></div><a name="15"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer15"><div class="loadingIcon"></div></div><a name="16"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer16"><div class="loadingIcon"></div></div><a name="17"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer17"><div class="loadingIcon"></div></div><a name="18"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer18"><div class="loadingIcon"></div></div><a name="19"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer19"><div class="loadingIcon"></div></div><a name="20"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer20"><div class="loadingIcon"></div></div><a name="21"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer21"><div class="loadingIcon"></div></div><a name="22"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer22"><div class="loadingIcon"></div></div><a name="23"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer23"><div class="loadingIcon"></div></div><a name="24"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer24"><div class="loadingIcon"></div></div><a name="25"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer25"><div class="loadingIcon"></div></div><a name="26"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer26"><div class="loadingIcon"></div></div><a name="27"></a><div style="width: 816px; height: 1056px;" class="page" id="pageContainer27"><div class="loadingIcon"></div></div><a name="28"></a><div style="width: 1056px; height: 816px;" class="page" id="pageContainer28"><div class="loadingIcon"></div></div><a name="29"></a><div style="width: 1056px; height: 816px;" class="page" id="pageContainer29"><div class="loadingIcon"></div></div></div>
|
||
</div>
|
||
|
||
<div id="loadingBox" hidden="true">
|
||
<div id="loading"></div>
|
||
<div id="loadingBar"><div style="height: 100%; width: 100%;" class="progress full"></div></div>
|
||
</div>
|
||
|
||
<div id="errorWrapper" hidden="true">
|
||
<div id="errorMessageLeft">
|
||
<span id="errorMessage"></span>
|
||
<button id="errorShowMore" onclick="" oncontextmenu="return false;" data-l10n-id="error_more_info">More Information</button>
|
||
<button id="errorShowLess" onclick="" oncontextmenu="return false;" data-l10n-id="error_less_info" hidden="true">Less Information</button>
|
||
</div>
|
||
<div id="errorMessageRight">
|
||
<button id="errorClose" oncontextmenu="return false;" data-l10n-id="error_close">Close</button>
|
||
</div>
|
||
<div class="clearBoth"></div>
|
||
<textarea id="errorMoreInfo" readonly="readonly" hidden="true"></textarea>
|
||
</div>
|
||
</div> <!-- mainContainer -->
|
||
|
||
</div> <!-- outerContainer -->
|
||
<div id="printContainer"></div>
|
||
|
||
|
||
|
||
</body></html> |