Teng Perkins Exhibit 3

[AdoubledotAngleN]

Can someone please explain the intuition on how they came up with these CPDLD ratios? I'm not really following this.

http://www.maggiemartin.net/images/tengperkins.jpg

[Soon]

[4] is the incremental PD, [3] is the incremental LD.
[7] is just the ratio of future CPD to future CLD. The future CPD resulted from the future CLD.

[AdoubledotAngleN]

Yeah this makes sense. I guess its pretty obvious now.

Thanks for your help!