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Hi rozer...

That does. Thanks for the clarification. I already pay careful attention to working capital in a number of ways (fcf vs. sfcf, flow ratio, ccc, etc.), but I'm still trying to get a grip on Mr. Heiserman's specifics (before I read the book, of course... because I get antsy like that... I've ordered Mr. Heiserman's book, but I'm also currently in the middle of Katsenelson's book on range-bound markets; Napier's "Anatomy of the Bear;" "For Whom the Bell Tolls" by Hemmingway; I've got about a quarter to go in "Atlas Shrugged" whick I love, but got sidetracked from a while back; I'm halfway through "Intelligent Investor;" and halfway through "Founding Brothers" not to mention the queue lined up behind those that I haven't cracked into yet... so you can see why I get antsy for an answer before I read the book... I have more reading lined up than I have time for at the moment. :) ). Thank you for helping me along.

One more quick question for you, since you seem to have his approach dialed in... cost of equity in the enterprising earnings section... he uses 10 year treasuries + 5%, capped at 10%... I'm assuming when looking at historical data (i.e. earnings for a given company from 3, 4 or 5 years ago) he will use the corresponding 10 year treasury rate from the same period (3, 4 and 5 years ago). Obviously that fluctuates, so... just a rough median value for that year works?

Thanks again,
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