MEMBERS O

1 Trịnh Ngọc Tiền (Leader)

2 Nguyễn Ngọc Hân
3 Nguyễn Vũ Quỳnh Ly
4 Nguyễn Hồ Phương Nguyên

EASTMAN CHE
Previous close 86.08 Beta (5Y Monthly)
Open 86.21 Volume
Day's High 86.56 Avg. Volume
Day's Low 84.04 Market Cap
Book value per share 44.89 Shares Outstanding
Price per share 86.14 EPS
Stock's current value per share (P0) 86.08 Dividend (t=0)
Dividend Yield
Growth rate
Statistics data are in recent years up to 06/12/2022
Ex-Dividend Date
1. Bond Issues In
Data source: Eastman C
 The Market Value of Equity (E) is also called "Market Cap". As of today, Eastman Chemical
Capitalization (E) = Shares Outstanding* Share Price

The total Book Value of Debt (D)

2. WEIGHTS
Weight of Equity = E/(E + D)

Weight of Debt = D/(E + D)

We use Capital Asset Pricing Model (CAPM) to calculate the Required Rate of Return
We use 10-year Treasury Constant Maturity Rate as the Risk-Free Rate. It is updated daily. T
Risk-Free Rate
Beta is the sensitivity of the expected excess asset returns to the expected excess market return
Chemical Co's Beta

3. COST OF (Expected Return of the Market - Risk-Free Rate of Return) is also called Market Risk Prem
EQUITY requires Market Risk Premium

CAPM method: Cost of Equity = Risk-Free Rate of Return + Beta of Asset* (Expected Return
Market - Risk-Free Rate of Return)

DGM method: Cost of Equity = Dividend yield + Growth rate

AVERAGE Cost of Equity

We use Income Statement's EMN in 2022, we take the TTM value of interest expense, we hav
Eastman Chemical Co's Interest Expense
4. COST OF DEBT
Eastman Chemical Co's Average Book Value of Debt in 2020 - 2021 (D)
COST OF DEBT

We base on TTM value in 2022 Income Statement's EMN, then we use Tax Icome/E

WACC = E/(E + D)* Cost of Equity + D/(E + D)* Cost of Debt* (1 - Tax Rate)
5. The Weighted Conclusion: Based on the result we caculated, WACC's EMN in 2022 lightly increases comp
Average Cost Of Basic Chemical Industries Co. is now 7.92%, while the WACC for Eastman Chemical C
Capital (WACC) Company's ROIC (7.74%) is lower than Basic Chemical Industries Co.'s (10.65%). Besides, B
than it costs the business to raise the funds needed. It is generating positive excess returns o
increase as well. While Eastman Chemical Co. generates returns below its cost of capital, m
develops more, it will decre
 MEMBERS OF GROUP
Trịnh Ngọc Tiền (Leader) K204041251
Nguyễn Ngọc Hân K204040225
Nguyễn Vũ Quỳnh Ly K204040225
Nguyễn Hồ Phương Nguyên K204041241

EASTMAN CHEMICAL CO.

1.48 BALANCE SHEET (forecasted 2022)
1,482,600 Equity 5,948,000,000
1,131,022 Liabilities 9,853,000,000
10,328,771,000 Assets 15,801,000,000
119,900,000 Total Debt 5,388,500,000
9.02 Year 2020
3.005 Equity 6,108,000,000
3.76% Liabilities 9,975,000,000
7.62% Assets 16,083,000,000
Sep 14, 2022 Total Debt 5,618,000,000
1. Bond Issues Information
Data source: Eastman Chemical bond rate
 As of today, Eastman Chemical Co's Market 10,328,771,000
nding* Share Price

Debt (D) 5,388,500,000

(E + D) 65.72%

E + D) 34.28%

e Required Rate of Return

-Free Rate. It is updated daily. The current 3.83%

he expected excess market returns. Eastman 1.48

) is also called Market Risk Premium. We

5.60%

+ Beta of Asset* (Expected Return of the 12.12%

end yield + Growth rate 11.38%

Equity 11.75%

value of interest expense, we have

186,000,000
0 - 2021 (D) 5,388,500,000
T 3.45%

s EMN, then we use Tax Icome/EBIT 20.57%

D)* Cost of Debt* (1 - Tax Rate) 8.661%

N in 2022 lightly increases compared to 2021 and 2020 which was 8.65% and 7.27%. Addionally, WACC for
WACC for Eastman Chemical Co. is 8.661% (higher than the industry). However, Eastman Chemical
ndustries Co.'s (10.65%). Besides, Basic Chemical Industries Co. makes investments that have larger ROIC
nerating positive excess returns on new investments in the future, and as growth accelerates, its value will
eturns below its cost of capital, means that EMN has the higher WACC but lower ROIC earned, when it
develops more, it will decrease value.
1251
0225
0225
241

forecasted 2022)
USD
USD
USD
USD
2021
5,788,000,000
9,731,000,000 Data source: Eastman Chemical Balance Sheet 2020-2021
15,519,000,000
5,159,000,000
 Data source: Marker risk premium & risk-free rate of EMN

Data source: Interest Expense of EMN

Data Source: Tax Income/EBIT of EMN in 2022

Data Source: WACC of Chemical Industry

Data Source: WACC Of Eastman
Data Source:
ChemicalROIC
Co. of Chemical Industries Co
0-2021
 BALANCE SHEET 2021 & 2020

STT Criterias 2021 2020

I Total Assets: 15,519,000 16,083,000
1 Current Asset: 4,646,000 3,541,000
1.1 Cash & Short-term Investment 459.000 564.000
1.2 Receivables 1,580,000 1,515,000
1.3 Inventory 1,504,000 1,379,000
2 Total Non-current asset: 10,873,000 12,542,000
2.1 Net PPE 4,996,000 5,549,000
2.2 Goodwill And Other Intangible Assets 5,003,000 6,257,000
2.3 Other Non Current Assets 874.000 736.000
II Total Liabilities: 9,731,000 9,975,000
1 Current Liabilities: 2,971,000 2,038,000
1.1 Payables & Accrued Expenses 1,778,000 1,299,000
1.1.1 Payables 1,467,000 1,071,000
1.1.2 Current Accrued Expenses 311.000 228.000
1.2 Current Debt And Capital Lease Obligation 747.000 349.000
1.3 Other Current Liabilities 376.000 252.000
2 Total Non-Current Liabilities Net Minority In 6,760,000 7,937,000
2.1 Long-term Debt 4,412,000 5,269,000
2.2 Non Current Deferred Liabilities 810.000 848.000
2.3 Employees Benefit 811.000 1,143,000
2.4 Other Non Current Liabilities 727.000 677.000
III Total Equity Gross Minority Interest 5,788,000 6,108,000
1 Stockholders' Equity 5,704,000 6,023,000
1.1 Capital Stock (Common Stock) 2.000 2.000
1.2 Additional Paid in Capital 2,187,000 2,174,000
1.3 Retained Earnings 8,557,000 8,080,000
1.4 Treasury Stock 4,860,000 3,960,000
1.5 Gains Losses Not Affecting Retained Earning (182.000) (273.000)
2 Minority Interest 84.000 85.000
IV Total Capitalization 10,116,000 11,292,000
V Common Stock Equity 5,704,000 6,023,000
VI Net Tangible Assets 701.000 (234.000)
VII Working Capital 1,675,000 1,503,000
VIII Invested Capital 10,863,000 11,641,000
IX Tangible Book Value 701.000 (234.000)
X Total Debt 5,159,000 5,618,000
XI Net Debt 4,700,000 5,054,000
XII Share Issued 221.86 220.692
XIII Ordinary Shares Number 128.968 135.862
XIV Treasury Shares Number 92.892 84.83
Data Source: Balance Sheet's EMN
Data Source: Income Statement's EMN
 INCOME STATEMENT 2021 & 2020

Criterias TTM 2021

Total Revenue 10,901,000.00 10,476,000.00
Cost of Revenue 8,581,000.00 7,976,000.00
Gross Profit 2,320,000.00 2,500,000.00
Operating Expense 1,029,000.00 1,049,000.00
Operating Income 1,291,000.00 1,451,000.00
EBITDA 2,146,000.00 -
Interest Income 4,000.00 3,000.00
Interest Expense 186,000.00 201,000.00
Net Interest Income (182,000.00) (198,000.00)
Total Expense 9,610,000.00 9,025,000.00
Pretax Income 1,478,000.00 1,082,000.00
Tax Provision 304,000.00 215,000.00
EBIT 1,664,000.00 1,283,000.00
Net Income 1,170,000.00 857,000.00

ROIC of EMN
2020 7.02%
2021 8.46%
Forecasted 2022 7.74%

ROE of EMN
2020 8.01%
2021 14.98%
Forecasted 2022 11.50%

Date Payout ratio

December 2022 38.12%
November 2022 32.97%
October 2022 31.73%
September 2022 33.55%
August 2022 31.80%
 July 2022 33.08%
June 2022 33.08%
May 2022 33.08%
April 2022 33.08%
March 2022 33.08%
February 2022 33.08%
January 2022 33.08%
Average payout ratio 33.31%

WACC 2020 2021

EMN 7.27% 8.65%
Chemical Industries Co. 6.63% 6.66%
 2020
8,473,000.00
6,498,000.00
1,975,000.00
880,000.00
1,095,000.00
-
4,000.00
214,000.00
(210,000.00)
7,378,000.00
530,000.00
41,000.00
744,000.00
478,000.00

Data Source: ROIC of Eastman

Data Source: ROE of Eastman

Data Source: Payout ratio of Eastman

Data Source: Payout ratio of Eastman

Data Source: WACC of Chemical Industry

Data Source: WACC Of Eastman Chemical Co.