CASE STUDY

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Title

This spreadsheet supports STUDENT analysis of the case, "California Pizza Kitchen" (Case 33)
March 31, 2008
Copyright (C) 2008, by the University of Virginia Darden School Foundation.

Exh. 2

Exhibit 2
California Pizza Kitchen, Inc.
Consolidated Balance Sheet (in thousands)
As of
1/1/06 12/31/06 7/1/07
Assets
Current assets
Cash and cash equivalents $ 11,272 $ 8,187 $ 7,178
Investments in marketable securities 11,408
Other receivables 4,109 7,876 10,709
Inventories 3,776 4,745 4,596
Current deferred tax asset, net 8,437 11,721 11,834
Prepaid income tax 1,428 8,769
Other prepaid expenses & other current assets 5,492 5,388 6,444
Total current assets 45,922 37,917 49,530
Property and equipment, net 213,408 255,382 271,867
Noncurrent deferred tax asset, net 4,513 5,867 6,328
Goodwill and other intangibles 5,967 5,825 5,754
Other assets 4,444 5,522 6,300
Total assets $ 274,254 $ 310,513 $ 339,779
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 7,054 $ 15,044 $ 14,115
Accrued compensation and benefits 13,068 15,042 15,572
Accrued rent 13,253 14,532 14,979
Deferred rent credits 4,056 4,494 5,135
Other accrued liabilities 9,294 13,275 13,980
Accrued income tax 3,614 9,012
Total current liabilities 46,725 66,001 72,793
Other liabilities 5,383 8,683 8,662
Deferred rent credits, net of current portion 24,810 27,486 32,436
Shareholders' equity:
Common stock 197 193 291
Additional paid-in-capital 231,159 221,163 228,647
Accumulated deficit (34,013) (13,013) (3,050)
Accumulated comprehensive loss (7)
Total shareholders' equity 197,336 208,343 225,888
Total liabilities & Shareholders' Equity $ 274,254 $ 310,513 $ 339,779
Sources of data: Company Annual and Quarterly Reports.

Exh. 3

Exhibit 3
California Pizza Kitchen, Inc.
Consolidated Income Statements (in thousands, except per-share data)
Fiscal Year(1) Three Months Ended
2003 2004 2005 2006 7/2/06 7/1/07
Restaurant sales $ 356,260 $ 418,799 $ 474,738 $ 547,968 $ 134,604 $ 156,592
Franchise and other revenues 3,627 3,653 4,861 6,633 1,564 1,989
Total revenues 359,887 422,452 479,599 554,601 136,168 158,581
Food, beverage and paper supplies 87,806 103,813 118,480 135,848 33,090 38,426
Labor 129,702 152,949 173,751 199,744 49,272 56,912
Direct operating and occupancy 70,273 83,054 92,827 108,558 26,214 30,773
Cost of Sales 287,781 339,816 385,058 444,150 108,576 126,111
General and administrative 21,488 28,794 36,298 43,320 11,035 12,206
Depreciation and amortization 20,714 23,975 25,440 29,489 7,070 9,022
Pre-opening costs 4,147 737 4,051 6,964 800 852
Severance charges(2) 1,221
Loss on impairment of PP&E 18,984 1,160
Store closure costs 2,700 152 707 768
Legal settlement reserve 1,333 600
Operating income 5,552 25,097 26,840 29,971 8,687 9,622
Interest income 317 571 739 718 287 91
Other income 1,105
Equity in loss of unconsolidated JV (349) (143) (22)
Total other income (expense) (32) 428 1,822 718 287 91
Income before income tax provision 5,520 25,525 28,662 30,689 8,974 9,713
Income tax provision (benefit) (82) 7,709 9,172 9,689 2,961 3,393
Net income $ 5,602 $ 17,816 $ 19,490 $ 21,000 $ 6,013 $ 6,320
Net income per common share:
Basic $ 0.30 $ 0.93 $ 1.01 $ 1.08 $ 0.20 $ 0.22
Diluted $ 0.29 $ 0.92 $ 0.99 $ 1.06 $ 0.20 $ 0.21
Selected Operating Data:
Restaurants open at end of period 168 171 188 205 193 213
Company-owned open at end of period(3) 137 141 157 176 162 182
Avg weekly full service rest. sales(3) $ 54,896 $ 57,509 $ 62,383 $ 65,406 $ 65,427 $ 68,535
18-mo. comparable rest. sales growth(3) 3.4% 8.0% 7.5% 5.9% 4.8% 5.4%
Notes:
(1) For the Years Ended December 31, 2006, January 1, 2006 and January 2, 2005, December 28, 2003.
(2) Severance charges represent payments to former President/CEO and former SVP/Senior Development Officer under terms of their separation agreements.
(3) Data for company-owned restaurants.
Sources of data: Company Annual and Quarterly Reports and quarterly company earnings conference calls.

Exh. 4

Exhibit 4
California Pizza Kitchen, Inc.
Selected Historical Comparable Store Sales (Calendarized)
CY06 CY07
CY03 CY04 CY05 Q1 Q2 Q3 Q4 Q1
California Pizza Kitchen 3.4% 9.3% 6.4% 4.8% 5.9% 5.6% 6.9% 4.7%
Applebee's International, Inc. 4.1% 4.8% 1.8% 2.6% -1.8% -2.3% -1.1% -4.0%
BJ's Restaurants, Inc. 3.3% 4.0% 4.6% 6.8% 5.9% 5.3% 5.5% 6.9%
Brinker International(1) 2.1% 1.9% 3.2% 2.7% -2.0% -2.1% -2.1% -4.4%
The Cheesecake Factory, Inc. 0.7% 3.9% 1.7% -1.3% -0.8% -1.6% 0.8% 0.4%
Chipotle Mexican Grill, Inc. 24.4% 13.3% 10.2% 19.7% 14.5% 11.6% 10.1% 8.3%
Darden Restaurants, Inc. -- Red Lobster 0.0% -3.9% 4.2% 1.6% 9.4% -2.1% 0.7% 4.6%
Darden Restaurants, Inc. -- Olive Garden 2.2% 4.7% 8.6% 5.7% 2.5% 2.9% 2.9% 1.0%
McCormick & Schmick's Seafood Restaurants, Inc. 1.1% 3.8% 3.0% 4.1% 2.8% 2.9% 2.0% 2.8%
Panera Bread Company 0.2% 2.7% 7.8% 9.0% 3.2% 2.8% 2.0% 0.0%
P.F. Chang's China Bistro 5.1% 3.0% 1.2% 1.3% -1.0% -0.5% -0.9% -2.5%
RARE -- Longhorn Steakhouse 4.6% 5.0% 2.8% 3.7% -0.4% -0.3% 1.5% -1.0%
Red Robin Gourmet Burgers 4.1% 7.5% 3.8% 4.8% 3.3% 0.8% 0.2% -0.5%
Ruth's Chris Steak House, Inc. 1.4% 11.6% 10.4% 6.8% 6.0% 4.3% 7.4% 1.9%
Sonic Corporation 1.6% 7.0% 5.4% 5.5% 4.3% 4.0% 3.4% 2.0%
Texas Roadhouse, Inc. 3.5% 7.6% 5.6% 6.4% 1.2% 2.3% 3.3% 0.9%
Note:
(1) Brinker's comparable store sales is a blended rate for its various brands.
Source of data: KeyBanc Capital Markets equity research.

Exh. 5

Exhibit 5
California Pizza Kitchen, Inc.
Selected Forecasts for California Pizza Kitchen
Date of Price 2007E 2008E 2009E
Firm Report Target Revenues EPS Revenues EPS Revenues EPS
Oppenheimer and Co. Inc. 4/9/07 $ 40 $ 652.9 $ 1.33 NA NA NA NA
CIBC World Markets 4/12/07 37 647.5 1.29 755.1 1.57 NA NA
KeyBanc Capital Markets 5/11/07 NA NA 1.28 NA 1.55 NA NA
RBC Capital Markets 5/11/07 37 650.7 1.31 753.1 1.59 878.2 1.90
Morgan Keegan & Co., Inc. 5/11/07 NA 644.2 1.33 742.1 1.58 NA NA
MKM Partners 5/11/07 39 647.5 1.34 754.3 1.69 NA NA
Source of data: Selected firms' equity research.

Exh. 6

Exhibit 6 Date CPK S&P SmallCap 600 Restaurants
California Pizza Kitchen, Inc. 3-Jul-06 100 100
Stock Price Comparison 5-Jul-06 99 99
6-Jul-06 97 98
7-Jul-06 96 97
10-Jul-06 101 98
11-Jul-06 100 97
12-Jul-06 103 95
13-Jul-06 98 92
14-Jul-06 97 92
17-Jul-06 98 92
18-Jul-06 96 92
19-Jul-06 99 94
20-Jul-06 94 91
21-Jul-06 95 90
24-Jul-06 97 93
25-Jul-06 98 95
26-Jul-06 96 92
27-Jul-06 95 90
28-Jul-06 95 91
31-Jul-06 97 91
1-Aug-06 94 90
2-Aug-06 93 91
3-Aug-06 95 92
4-Aug-06 95 93
7-Aug-06 96 92
8-Aug-06 100 92
9-Aug-06 95 90
10-Aug-06 98 91
11-Aug-06 97 92
14-Aug-06 99 94
15-Aug-06 102 96
16-Aug-06 105 98
17-Aug-06 105 99
18-Aug-06 105 99
Note: 21-Aug-06 102 98
Adjusted for the June 2007 50% stock dividend. With such a dividend, an owner of two shares of CPK stock was given an additional share. 22-Aug-06 101 98
The effect was to increase CPK shares by a third yet maintain the overall capitalization of the equity. 23-Aug-06 99 97
24-Aug-06 99 97
Sources of data: Yahoo! Finance and Datastream. 25-Aug-06 97 96
28-Aug-06 100 97
29-Aug-06 102 99
30-Aug-06 104 100
31-Aug-06 104 99
1-Sep-06 106 100
5-Sep-06 106 101
6-Sep-06 103 99
7-Sep-06 102 99
8-Sep-06 104 100
11-Sep-06 104 101
12-Sep-06 109 104
13-Sep-06 109 105
14-Sep-06 109 105
15-Sep-06 110 106
18-Sep-06 108 105
19-Sep-06 109 105
20-Sep-06 112 107
21-Sep-06 110 106
22-Sep-06 109 105
25-Sep-06 109 106
26-Sep-06 109 106
27-Sep-06 111 106
28-Sep-06 111 105
29-Sep-06 109 104
2-Oct-06 110 104
3-Oct-06 111 104
4-Oct-06 117 109
5-Oct-06 118 109
6-Oct-06 117 109
9-Oct-06 118 109
10-Oct-06 117 108
11-Oct-06 115 107
12-Oct-06 120 110
13-Oct-06 120 111
16-Oct-06 121 112
17-Oct-06 120 111
18-Oct-06 120 111
19-Oct-06 119 110
20-Oct-06 118 109
23-Oct-06 119 110
24-Oct-06 120 111
25-Oct-06 120 111
26-Oct-06 120 112
27-Oct-06 118 110
30-Oct-06 120 111
31-Oct-06 118 110
1-Nov-06 116 109
2-Nov-06 115 109
3-Nov-06 112 106
6-Nov-06 118 108
7-Nov-06 118 108
8-Nov-06 119 109
9-Nov-06 116 107
10-Nov-06 114 108
13-Nov-06 111 108
14-Nov-06 112 110
15-Nov-06 112 111
16-Nov-06 111 112
17-Nov-06 112 111
20-Nov-06 113 111
21-Nov-06 113 111
22-Nov-06 113 111
24-Nov-06 112 111
27-Nov-06 108 108
28-Nov-06 112 108
29-Nov-06 116 109
30-Nov-06 115 109
1-Dec-06 115 108
4-Dec-06 118 111
5-Dec-06 116 111
6-Dec-06 116 110
7-Dec-06 118 110
8-Dec-06 118 110
11-Dec-06 119 110
12-Dec-06 119 109
13-Dec-06 120 109
14-Dec-06 120 109
15-Dec-06 119 109
18-Dec-06 119 108
19-Dec-06 118 108
20-Dec-06 118 109
21-Dec-06 117 109
22-Dec-06 117 109
26-Dec-06 120 110
27-Dec-06 122 111
28-Dec-06 122 111
29-Dec-06 122 110
3-Jan-07 123 110
4-Jan-07 124 110
5-Jan-07 122 108
8-Jan-07 123 108
9-Jan-07 124 109
10-Jan-07 126 110
11-Jan-07 131 112
12-Jan-07 134 112
16-Jan-07 133 112
17-Jan-07 132 111
18-Jan-07 130 110
19-Jan-07 129 110
22-Jan-07 129 109
23-Jan-07 129 110
24-Jan-07 130 111
25-Jan-07 129 109
26-Jan-07 130 108
29-Jan-07 130 108
30-Jan-07 131 109
31-Jan-07 130 111
1-Feb-07 131 112
2-Feb-07 132 112
5-Feb-07 131 111
6-Feb-07 131 111
7-Feb-07 130 112
8-Feb-07 131 112
9-Feb-07 130 111
12-Feb-07 129 111
13-Feb-07 130 112
14-Feb-07 129 113
15-Feb-07 129 113
16-Feb-07 120 113
20-Feb-07 120 115
21-Feb-07 123 117
22-Feb-07 122 117
23-Feb-07 122 118
26-Feb-07 121 116
27-Feb-07 116 112
28-Feb-07 117 113
1-Mar-07 117 113
2-Mar-07 116 111
5-Mar-07 114 109
6-Mar-07 118 111
7-Mar-07 118 111
8-Mar-07 117 111
9-Mar-07 117 112
12-Mar-07 117 112
13-Mar-07 117 110
14-Mar-07 118 111
15-Mar-07 117 111
16-Mar-07 115 110
19-Mar-07 117 111
20-Mar-07 117 111
21-Mar-07 116 113
22-Mar-07 115 113
23-Mar-07 115 113
26-Mar-07 118 112
27-Mar-07 117 112
28-Mar-07 117 111
29-Mar-07 118 111
30-Mar-07 120 112
2-Apr-07 120 112
3-Apr-07 122 114
4-Apr-07 120 113
5-Apr-07 121 113
9-Apr-07 121 113
10-Apr-07 119 113
11-Apr-07 117 112
12-Apr-07 119 112
13-Apr-07 120 112
16-Apr-07 122 114
17-Apr-07 121 114
18-Apr-07 121 113
19-Apr-07 122 112
20-Apr-07 124 114
23-Apr-07 125 113
24-Apr-07 121 113
25-Apr-07 121 114
26-Apr-07 122 114
27-Apr-07 124 113
30-Apr-07 122 110
1-May-07 124 111
2-May-07 126 112
3-May-07 125 112
4-May-07 123 112
7-May-07 125 113
8-May-07 124 113
9-May-07 126 113
10-May-07 125 111
11-May-07 135 113
14-May-07 132 112
15-May-07 130 111
16-May-07 130 112
17-May-07 128 111
18-May-07 129 112
21-May-07 134 113
22-May-07 133 113
23-May-07 132 113
24-May-07 133 112
25-May-07 133 113
29-May-07 133 113
30-May-07 133 113
31-May-07 134 113
1-Jun-07 135 114
4-Jun-07 135 115
5-Jun-07 134 114
6-Jun-07 132 111
7-Jun-07 126 109
8-Jun-07 128 110
11-Jun-07 126 109
12-Jun-07 124 108
13-Jun-07 124 109
14-Jun-07 124 110
15-Jun-07 125 110
18-Jun-07 124 110
19-Jun-07 123 109
20-Jun-07 121 108
21-Jun-07 118 105
22-Jun-07 117 104
25-Jun-07 115 104
26-Jun-07 115 104
27-Jun-07 117 106
28-Jun-07 117 105
29-Jun-07 118 104
2-Jul-07 121 105

Exh. 6
CPK
S&P SmallCap 600 Restaurants
Value of $100 invested in CPK and S&P SmallCap 600 Restaurants Index

Exh. 7

Exhibit 7
California Pizza Kitchen, Inc.
Comparative Restaurant Financial Data, 2006 Fiscal Year (in millions, except per-share data)
Fiscal Year End 7/2/07 EBITDA Net Profit Earnings Dividends Book Value
Month Share Price Revenue Margin Margin Per Share Per Share Per Share Beta
California Pizza Kitchen Dec. $ 22.10 $ 555 10.7% 3.8% $ 0.71 $0.00 $ 7.20 0.85
Applebee's International, Inc. Dec. 24.28 1,338 15.9% 6.5% 1.17 0.20 6.49 0.80
BJ's Restaurants, Inc. Dec. 20.05 239 9.6% 4.1% 0.41 0.00 7.78 1.05
Brinker International(1) June 29.37 4,151 12.0% 4.7% 1.49 0.20 8.59 0.90
Buffalo Wild Wings, Incorporated Dec. 41.78 278 13.3% 5.8% 0.93 0.00 6.61 1.10
The Cheesecake Factory, Inc. Dec. 24.57 1,315 12.2% 6.2% 1.02 0.00 9.09 1.00
Chipotle Mexican Grill, Inc. Dec. 86.00 823 13.0% 5.0% 1.28 0.00 14.56 NA
Darden Restaurants, Inc.(2) May 44.14 5,721 13.2% 5.9% 2.16 0.40 8.37 1.00
Frisch's Restaurants, Inc. May 30.54 291 31.6% 3.1% 1.78 0.44 19.84 0.60
McCormick & Schmick's Dec. 25.66 308 9.7% 4.3% 0.92 0.00 11.20 1.10
Panera Bread Company Dec. 46.02 829 16.3% 7.2% 1.87 0.00 12.53 1.25
P.F. Chang's China Bistro Dec. 35.37 938 10.5% 3.6% 1.24 0.00 11.41 1.10
RARE Hospitality International Inc.(3) Dec. 26.76 987 11.6% 5.1% 1.45 0.00 11.17 0.57
Red Robin Gourmet Burgers Dec. 40.19 619 13.7% 4.9% 1.82 0.00 14.68 1.05
Ruth's Chris Steak House, Inc. Dec. 16.80 272 15.6% 8.7% 1.01 0.00 2.93 NA
Sonic Corporation Aug. 22.00 693 24.9% 11.4% 0.88 0.00 4.66 0.90
Texas Roadhouse, Inc. Dec. 12.81 597 12.5% 5.7% 0.44 0.00 4.30 0.90
Current Current Total Shr. Debt/ Interest T. Capital Return On
Assets Liabilities Debt Equity Capital Coverage Turnover Capital Equity
California Pizza Kitchen $ 38 $ 66 $0 $ 208 0.0% NMF 2.7 10.1% 10.1%
Applebee's International, Inc. 105 187 175 487 26.5% 11.7 2.0 14.0% 18.0%
BJ's Restaurants, Inc. 96 36 0 203 0.0% NMF 1.2 4.9% 4.9%
Brinker International(1) 242 497 502 1,076 31.8% 14.4 2.6 13.2% 18.0%
Buffalo Wild Wings, Incorporated 75 26 0 116 0.0% NMF 2.4 14.0% 14.0%
The Cheesecake Factory, Inc. 203 163 0 712 0.0% NMF 1.8 11.4% 11.4%
Chipotle Mexican Grill, Inc. 179 61 0 474 0.0% NMF 1.7 8.8% 8.7%
Darden Restaurants, Inc.(2) 378 1,026 645 1,230 34.4% 10.9 3.1 20.6% 27.5%
Frisch's Restaurants, Inc. 12 31 43 101 30.1% 5.9 2.0 7.9% 9.1%
McCormick & Schmick's 30 40 0 160 0.2% NMF 1.9 8.3% 8.3%
Panera Bread Company 128 110 0 398 0.0% NMF 2.1 15.1% 15.1%
P.F. Chang's China Bistro 65 104 19 290 6.2% NMF 3.0 11.1% 11.5%
RARE Hospitality International Inc.(3) 125 134 166 360 31.6% 29.2 1.9 9.8% 13.9%
Red Robin Gourmet Burgers 29 70 114 244 31.9% 7.7 1.7 9.3% 12.5%
Ruth's Chris Steak House, Inc. 26 59 68 68 50.0% 12.8 2.0 18.6% 34.9%
Sonic Corporation 43 78 159 392 28.9% 15.0 1.3 15.3% 20.1%
Texas Roadhouse, Inc. 53 78 36 319 10.2% 19.9 1.7 9.7% 10.7%
Notes:
(1) Brinker's restaurant brands include Chili's Grill & Bar, Romano's Macaroni Grill, On The Border and Maggiano's.
(2) Darden's restaurant brands include Red Lobster and The Olive Garden.
(3) RARE's restaurant brands include LongHorn Steakhouse, The Capital Grille and Bugaboo Creek Steak House.
Sources of data: Value Line Investment Survey, 2007; Standard & Poor's Stock Report, 2007 and company Annual Reports and websites.

Exh. 8

Exhibit 8
California Pizza Kitchen, Inc.
Interest Rates and Yields
U.S. Treasury Securities Average Average
Bills Notes & Bonds Corporate bonds (Moody's) Prime LIBOR
3-month 6-month 3-year 10-year 30-year Aaa 3 Baa Lending 3-month
2000 5.85% 5.92% 6.22% 6.03% 5.94% 7.62% 8.36% 9.23% 6.55%
2001 3.45% 3.39% 4.09% 5.02% 5.49% 7.08% 7.95% 6.91% 3.63%
2002 1.62% 1.69% 3.10% 4.61% ...... 6.49% 7.80% 4.67% 1.79%
2003 1.02% 1.06% 2.10% 4.01% ...... 5.67% 6.77% 4.12% 1.22%
2004 1.38% 1.58% 2.78% 4.27% ...... 5.63% 6.39% 4.34% 1.67%
2005 3.16% 3.40% 3.93% 4.29% ...... 5.24% 6.06% 6.19% 3.63%
2006: Jan. 4.20% 4.30% 4.35% 4.42% ...... 5.29% 6.24% 7.38% 4.68%
Feb. 4.41% 4.51% 4.64% 4.57% 4.54% 5.35% 6.27% 7.50% 4.82%
Mar. 4.51% 4.61% 4.74% 4.72% 4.73% 5.53% 6.41% 7.63% 4.99%
Apr. 4.59% 4.72% 4.89% 4.99% 5.06% 5.84% 6.68% 7.75% 5.15%
May. 4.72% 4.81% 4.97% 5.11% 5.20% 5.95% 6.75% 7.88% 5.23%
June 4.79% 4.95% 5.09% 5.11% 5.15% 5.89% 6.78% 7.13% 5.51%
July 4.96% 5.09% 5.07% 5.09% 5.13% 5.85% 6.76% 8.25% 5.49%
Aug. 4.98% 4.99% 4.85% 4.88% 5.00% 5.68% 6.59% 8.25% 5.40%
Sept. 4.82% 4.90% 4.69% 4.72% 4.85% 5.51% 6.43% 8.25% 5.37%
Oct. 4.89% 4.91% 4.72% 4.73% 4.85% 5.51% 6.42% 8.25% 5.37%
Nov. 4.95% 4.96% 4.64% 4.60% 4.69% 5.33% 6.20% 8.25% 5.37%
Dec. 4.85% 4.88% 4.58% 4.56% 4.68% 5.32% 6.22% 8.25% 5.36%
2007: Jan. 4.96% 4.94% 4.79% 4.76% 4.85% 5.40% 6.34% 8.25% 5.36%
Feb. 5.02% 4.97% 4.75% 4.72% 4.82% 5.39% 6.28% 8.25% 5.36%
Mar. 4.97% 4.90% 4.51% 4.56% 4.72% 5.30% 6.27% 8.25% 5.35%
Apr. 4.88% 4.87% 4.60% 4.69% 4.87% 5.47% 6.39% 8.25% 5.36%
May. 4.77% 4.80% 4.69% 4.75% 4.90% 5.47% 6.39% 8.25% 5.36%
June 4.63% 4.77% 5.00% 5.10% 5.20% 5.79% 6.70% 8.25% 5.36%
Sources of data: Economic Report of the President and Fannie Mae website.
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Exh. 9

Exhibit 9
CALIFORNIA PIZZA KITCHEN
Pro Forma Tax Shield Effect of Recapitalization Scenarios
(Dollars in thousands, except share data; figures based on end of June 2007)
Debt/Total Capital
Actual 10% 20% 30%
Interest rate (1) 6.16% 6.16% 6.16% 6.16%
Tax rate 32.5% 32.5% 32.5% 32.5%
Earnings before income taxes and interest(2) 30,054 30,054 30,054 30,054
Interest expense 0 1,391 2,783 4,174
Earnings before taxes 30,054 28,663 27,271 25,880
Income taxes 9,755 9,303 8,852 8,400
Net income 20,299 19,359 18,419 17,480
Book value:
Debt 0 22,589 45,178 67,766
Equity 225,888 203,299 180,710 158,122
Total capital 225,888 225,888 225,888 225,888
Market value:
Debt(3) 0 22,589 45,178 67,766
Equity(4) 643,773 628,516 613,259 598,002
Market value of capital 643,773 651,105 658,437 665,769
Notes:
(1) Interest rate of CPK's credit facility with Bank of America: LIBOR + 0.80%.
(2) EBIT includes interest income.
(3) Market values of debt equal book values.
(4) Actual market values of equity equals the share price ($22.10) multiplied by the current number of shares outstanding (29.13 million).
Source: Case writer analysis based on CPK financial data.