Cost of Capital: Applications and Examples, + Website, 5th Edition

APPENDIX 42A

Report for Cost of Capital for a Mid-Sized Company¹

Section C—Liabilities of ABC OpCo and RE HoldCo

Debt Owed by ABC OpCo

Guarantees and Cross-Collateralization by RE HoldCo

Contingent Liabilities—Letters of Credit of ABC OpCo

Contingent Liabilities—Cross-Collateralization and RE HoldCo Guarantees of ABC HoldCo Debt

Estimation of Contingent Liabilities of ABC OpCo and RE HoldCo

Summary of Debt Liabilities

Section E—Cost of Capital of ABC OpCo

The WACC for ABC OpCo

Development of the WACC

Concluded WACC for ABC OpCo

Section H—Leased-Fee Interest Valuation of RE HoldCo Buildings

Restricted Appraisal Report

SECTION C—LIABILITIES OF ABC OPCO AND RE HOLDCO

Debt Owed by ABC OpCo

As of the Valuation Date the following funded debt was owed by ABC OpCo:

• $1 .7 million under a credit facility from a Bank in the original face amount of $4.8 million pursuant to an Amended and Restated Credit Agreement.
• $26.2 million under a mortgage loan from the Bank in the original face amount of $26.6 million, pursuant to a Loan Agreement, and secured by a mortgage on ABC OpCo's property in New York, in favor of the Bank.
• $14.3 million loan from the Bank, pursuant to a note, and secured by the proceeds of the loan held as cash collateral under a Security Agreement in favor of the Bank.
• $2.8 million under a revolving credit facility from another bank, and secured by a credit line mortgage on ABC OpCo's property.
• $3 .7 million in capital leases related to equipment with leases expiring in years ...