30% Debt Sales Earnings before interest and taxes $4131.2 50% Debt $4131.2 70% Debt 90% Debt...

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30% Debt Sales Earnings before interest and taxes $4131.2 50% Debt $4131.2 70% Debt 90% Debt $4131.2 922.2 922.2 922.2 Interest Profit before taxes Taxes Profit after tax 52.7 87.8 122.9 869.5 834.4 799.3 417.4 400.5 383.7 452.1 433.9 415.6 Profit after tax + Interest Dividends on preferred stock 0.4 0.4 0.4 Earnings available to common shareholders 451.7 433.5 415.2 Dividends on common stock 271.0 260.1 249.1 Excess cash 233.0 233.0 233.0 Additional debt (currently $13.9) 362.2 612.9 863.7 Total repurchase (@$30) 595.2 845.9 1096.7 Reduction in common shares (X) 19.8 28.2 36.6 Average common shares outstanding (155.5-X) 135.7 127.3 118.9 Earnings per share $3.33 $3.41 $3.49 Dividends per share $2.00 $2.04 $2.10 Tax rate = 48% Common dividend payout ratio = 60% Interest on debt = 14% Original number of shares outstanding = 155.5 million shares Price for share repurchases = $30 Current debt = 13.9 30% Debt Sales Earnings before interest and taxes $4131.2 50% Debt $4131.2 70% Debt 90% Debt $4131.2 922.2 922.2 922.2 Interest Profit before taxes Taxes Profit after tax 52.7 87.8 122.9 869.5 834.4 799.3 417.4 400.5 383.7 452.1 433.9 415.6 Profit after tax + Interest Dividends on preferred stock 0.4 0.4 0.4 Earnings available to common shareholders 451.7 433.5 415.2 Dividends on common stock 271.0 260.1 249.1 Excess cash 233.0 233.0 233.0 Additional debt (currently $13.9) 362.2 612.9 863.7 Total repurchase (@$30) 595.2 845.9 1096.7 Reduction in common shares (X) 19.8 28.2 36.6 Average common shares outstanding (155.5-X) 135.7 127.3 118.9 Earnings per share $3.33 $3.41 $3.49 Dividends per share $2.00 $2.04 $2.10 Tax rate = 48% Common dividend payout ratio = 60% Interest on debt = 14% Original number of shares outstanding = 155.5 million shares Price for share repurchases = $30 Current debt = 13.9