is8.68%.InFigure13.2,wevaluethecompanyassumingthat
itwillcontinueitscurrentinvestmentpolicy(maintainingits
reinvestmentrateandreturnoncapitalfrom 2004 forthenext
fiveyears)anditsconservativefinancingpolicy.Thevalue
per share that we arrive at is 106.12 euros.
FIGURE 13.2SAP: Value with Status Quo
How much can SAP afford to borrow? To answer this
question, we estimate the cost of capital for SAP in the
following table at debt ratios ranging from 0% to 90%.
6