This excerpt taken from the PBG 8-K filed Jun 3, 2009.
Art Barry - Loomis, Sayles & Company - Analyst
Good morning. Art Barry from Loomis Sayles. Why don't you -- what do you think about asking Pepsi for 100% stock because Pepsi itself is trading at the lowest multiple in 15 years? So as a Pepsi Bottling shareholder I would benefit from some of the upside there.
Number two I am a big believer in DCFs and the problem I have doing a DCF with a bottler is the CAPM implies that your discount rate is actually even lower than Pepsi's itself. So what would you suggest is your weighted average cost of capital? What discount rate do you think that we should use when we are building our model to determine the value of Pepsi Bottling Group?
Al Drewes - Pepsi Bottling Group, Inc. - SVP & CFO
Typically on the WACC typically we have talked about a number around 7.5% and that is a calculated WACC that we come up with. I think some of the sell side folks do it a little differently and may come up with different numbers, but that is what we would use.
Eric Foss - Pepsi Bottling Group, Inc. - Chairman & CEO
And, Art, on the first question I think we are not going to comment on the structure of the deal proposal or any comments on any discussions or negotiations relative to PepsiCo.
Mary Winn Settino - Pepsi Bottling Group, Inc. - VP, IR and Public Relations
Operator, we will take the next question.