Cost of Capital Ameritrade Case Solution

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201-046

Cost of Capital at Ameritrade

Exhibit 1 Consolidated Annual Income Statements for the Fiscal Year Ending in September
1997 Net Revenues Transaction Income Net Interest Other Total Net Revenues Expenses Excluding Interest Employee Compensation Commissions and Clearance Communications Occupancy and Equipment Cost Advertising and Promotion Provision for Losses Amortization of Goodwill Other Total Expenses Excluding Interest Income Before Income Taxes Taxes Net Income EPS Shares Outstanding Source: Ameritrade Annual Report, 1997. $ $ 51.936.902,00 $ 18.193.946 7.107.492 77.238.340 1996 36.469.561,00 $ 11.477.878 6.391.314 54.338.753 1995 23.977.481,00 8.434.584 2.607.538 35.019.603

19.290.808 3.320.262 5.623.468 5.422.839 13.970.834 59.000 363.002 7.763.014 55.813.227 21.425.113 7.602.964 13.822.149 $ $1,00 13.768.889

14.049.642 2.530.642 3.685.535 2.889.654 7.537.265 148.014 363.002 4.717.406 35.921.160 18.417.593 7.259.248 11.158.345 $ $0,87 12.813.823

8.481.977 2.516.796 2.352.590 1.626.725 4.842.392 1.428.663 94.152 2.846.280 24.189.575 10.830.028 3.798.881 7.031.147 $0,55 12.813.823

t Ameritrade

Cost of Capital at Ameritrade

201-046

Exhibit 2 Consolidated Annual Balance Sheets for the Fiscal Year Ending in September
1997 1996

ASSETS Cash & Gash Equivalents Cash & Investments Segregated in Compliance with Federal Regulations Receivable from Brokers, Dealers, & Clearing Organizations Receivable from Customers & Correspondents Furniture, Equipment, & Leasehold Improvements Goodwill Equity Investments Other Investments Deferred Income Taxes Other Assets Total Assets LIABILITIES & STOCKHOLDERS EQUITY Liabilities: Payable to Brokers, Dealers, & Clearing Organizations Payable to Customers & Correspondents Accounts Payable and Accrued Liabilities Notes Payable to Bank Income Taxes Payable Total Liabilities Stockholder’s Equity:…...

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...201-046 Cost of Capital at Ameritrade Exhibit 1 Consolidated Annual Income Statements for the Fiscal Year Ending in September 1997 Net Revenues Transaction Income Net Interest Other Total Net Revenues Expenses Excluding Interest Employee Compensation Commissions and Clearance Communications Occupancy and Equipment Cost Advertising and Promotion Provision for Losses Amortization of Goodwill Other Total Expenses Excluding Interest Income Before Income Taxes Taxes Net Income EPS Shares Outstanding Source: Ameritrade Annual Report, 1997. $ $ 51.936.902,00 $ 18.193.946 7.107.492 77.238.340 1996 36.469.561,00 $ 11.477.878 6.391.314 54.338.753 1995 23.977.481,00 8.434.584 2.607.538 35.019.603 19.290.808 3.320.262 5.623.468 5.422.839 13.970.834 59.000 363.002 7.763.014 55.813.227 21.425.113 7.602.964 13.822.149 $ $1,00 13.768.889 14.049.642 2.530.642 3.685.535 2.889.654 7.537.265 148.014 363.002 4.717.406 35.921.160 18.417.593 7.259.248 11.158.345 $ $0,87 12.813.823 8.481.977 2.516.796 2.352.590 1.626.725 4.842.392 1.428.663 94.152 2.846.280 24.189.575 10.830.028 3.798.881 7.031.147 $0,55 12.813.823 t Ameritrade Cost of Capital at Ameritrade 201-046 Exhibit 2 Consolidated Annual Balance Sheets for the Fiscal Year Ending in September 1997 1996 ASSETS Cash & Gash Equivalents Cash & Investments Segregated in Compliance with Federal Regulations Receivable from Brokers, Dealers, & Clearing Organizations Receivable from Customers & Correspondents...

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