Brief Company Description (All companies in the group)

Corporate Governance Analysis

CEO Information and Compensation (Template table below)

Company CEO Years CEO/with % Ownership Other

Name firm Boards

Key Findings

Board Information and CALPERS Test (Template table below)

Company No. of Avg. CEO is No. of Independent

Board Years Chairman? Insiders Audit and
Members on Compensation
Board Committee

Key Findings
Please provide a detailed answer on all companies in your group on the
questions below

How many directors are independent? (Template table below)

Name Type Attendance out No. of Directorships/ Committee Since

of 6 positions held

Are the directors really independent?

Is the chairman of the board independent of the company (and not the CEO of the
company)?

Is the compensation and audit committees composed entirely of outsiders?

(Template table below)

Name of the Type No. of directorships Since

Director held

Is there a significant divergence between shareholders and directors interests?

(Please provide a detailed answer)
Ownership Analysis
Top Holdings/ Owners of the Company (Detailed table of Ownership with
classification of owner) - Are the top marginal investors of the company well
diversified?

Calculating the Cost of Equity, Cost of Debt and Cost of Capital

Calculate the Beta of all firms in your group and provide information on the
parameters used to calculate the same

Calculate Cost of Equity through the CAPM approach and provide information on
the Risk Free Rate, Beta and Equity Risk Premium. Analyze your findings and
provide a detailed answer for the same.

Calculate the average Market Debt to Equity ratio (Average of 5 years) and use
that for unlevering and relevering Beta. Explain why Beta for some businesses is
higher/ Lower.

Calculate the cost of debt and provide details on Risk Free Rate, Synthetic Default
Spread and Country Risk Premium used.

Calculate weighted average cost of capital using market value weights. Explain
your findings in detail.