Chapter 9 Problem 16
	Harley-Davidson Inc. 2004 ($ millions)
Net income	$ 889.77
Number of common shares, millions	294.31
Earnings before interest and tax	$ 1,506.16
Tax rate	35.0%
Book value of equity	$ 3,218.47
Book value interest-bearing debt	$ 1,295.44
Total Sales	$ 5,320.45
Total Assets	$ 5,483.29
							Excluding
	Harley-	Arctic		Polaris	Marine	Winnebago	Harley-Davidson:
	Davidson	Cat	Brunswick	Industries	Products	Industries	Median	Mean
			Comparison of Timberland with Comparable Companies:
			Growth Rates, Financial Risks, Size, Returns
5-year growth rate in sales (%)	15.5	6.2	4.1	6.1	15.5	10.8
5-year growth rate in eps (%)	28.1	11.1	47.1	15.9	25.1	17.2
Interest coverage ratio (x)	60.9	*	8.9	85.1	*	*
Total liabilities to assets (%)	0.4	0.3	0.6	0.5	0.2	0.5
Total assets ($ millions)	5,483	286	4,346	793	110	395
			Indicators of Value
Price/earnings (x)		16.9	17.8	27.8	28.6	18.6
MV firm/EBIT(1-tax rate) (x)		17.3	19.4	24.3	29.0	17.6
MV equity/BV equity (x)		2.8	2.8	8.0	7.7	6.5
MV firm/BV firm (x)		2.8	2.3	7.7	7.7	6.5
Price/sales (x)		0.8	0.9	1.6	2.7	1.2
MV firm/sales (x)		0.8	1.1	1.7	2.7	1.2
The median and mean values for Harley-Davidsons peers are appended to the table above.
Price/earnings
MV firm/EBIT(1 - tax rate)
MV equity/BV equity
MV firm/BV firm
Price/sales (x)
MV firm/sales (x)
The implied value of HOG common stock per share for each indicator of value is:
Price/earnings
MV firm/EBIT(1 - tax rate)
MV equity/BV equity
MV firm/BV firm
Price/sales
MV firm/sales
Average implied value