Table of Contents

1. Are you more or less optimistic about the U.S. economy compared to last quarter? 	1
1b. Rate your optimism about the U.S. economy on a scale from 0-100, with 0 being the least optimistic and 100 
being the most optimistic.	2

2. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?	3
2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the 
least optimistic and 100 being the most optimistic.	4

3. What are the top three concerns your corporation faces? (rank #1, #2, #3)	5
3. What are the top three concerns your corporation faces? REVERSED SCALE & WEIGHTED BY NUMBER OF 
RESPONDENTS (Higher number = greater weighted importance)	6
3. What are the top three concerns your corporation faces? (rank #1, #2, #3) OTHER SPECIFIED	7

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 
12 months? (e.g., +3%, -2%, etc.) [Leave blank if not applicable]	9
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?	10
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months 
for:   [Unweighted - Sorted]	11
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  
[All Companies - Windsorized - Revenue Weighted - Sorted]	12
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  
[All Companies - Windsorized - Employee Weighted - Sorted]	13
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  
[Public Companies - Windsorized – Revenue Weighted]	14

5. What do you expect to be the greatest drivers of profit growth for your company in 2007? (Choose top 3)	15
5. What do you expect to be the greatest drivers of profit growth for your company in 2007? (Choose top 3)  OTHER	16

6. What is the probability that the U.S. Economy will experience a recession during the next 12 months? (e.g., 0%, 50%, etc)	17
6. What is the probability that the U.S. Economy will experience a recession during the next 12 months? (e.g., 0%, 50%, etc)	18

7a. Has your company been targeted by activist investors (e.g., activist hedge funds, pension funds, or private equity) 
during the past few years?	19
7b. How friendly were your interactions with the activist investor?	20
7c. All in all, after responding to or warding off the activist investor, is your company better off or worse off for the 
experience?	21
7d. Did you alter your corporate policies or take actions to address suggestions or demands by activist investors?	22
7e. Which policies did you alter or actions did you take to address suggestions or demands by activist investors?	23
7e. Which policies did you alter or actions did you take to address suggestions or demands by activist investors? OTHER	24

8a. In the last year has your company been active in the M&A market as a buyer (seeking or acquiring targets)?	25
8b. If yes, do you think the presence of private equity investors in the market is making it harder for you to buy 
companies at acceptable prices?	26

9. If Congress could tackle only three issues in the coming year, which should they be? (Choose top 3)	27

10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete the following:	28
Revenue Weighted: 10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete 
the following:	29
Employee Weighted: 10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete 
the following:	30

Industry	31
Industry (Other specified)	32
Sales Revenue	33
Weighted Sales Revenue (Millions)	34
Number of Employees	35
Weighted Number of Employees	36
Headquarters	37
Ownership	38
Foreign Sales	39

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

1. Are you more or less optimistic about the U.S. economy compared to last quarter?

	 	Number	Percent	95% CI
	3=More optimistic	135	30.3 %	± 4.4 %
	2=No change	155	34.8 %	± 4.6 %
	1=Less optimistic	155	34.8 %	± 4.6 %
	Total	445	100.0 %

	Mean = 1.96
	SD = .81

	Missing Cases = 1 
	Response Percent = 99.8 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

1b. Rate your optimism about the U.S. economy on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0.70

	Maximum = 92

	Mean = 65.84

	Median = 70

	Variance (Unbiased) = 252.45

	Standard Deviation (Unbiased) = 15.89

	Standard Error Of The Mean  = 0.79

	95 Percent Confidence Interval Around The Mean = 64.30 - 67.39

	99 Percent Confidence Interval Around The Mean = 63.81 - 67.87

Valid Cases = 407 
Missing Cases = 39 
Response Percent = 91.3%

3

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

2. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?

	 	Number	Percent	95% CI
	3=More optimistic	209	47.0 %	± 4.8 %
	2=No change	114	25.6 %	± 4.2 %
	1=Less optimistic	122	27.4 %	± 4.3 %
	Total	445	100.0 %

	Mean = 2.20
	SD = .84

	Missing Cases = 1 
	Response Percent = 99.8 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0

	Maximum = 100

	Mean = 69.75

	Median = 75

	Variance (Unbiased) = 357.71

	Standard Deviation (Unbiased) = 18.91

	Standard Error Of The Mean  = 0.94

	95 Percent Confidence Interval Around The Mean = 67.91 - 71.60

	99 Percent Confidence Interval Around The Mean = 67.33 - 72.17

Valid Cases = 405 
Missing Cases = 41 
Response Percent = 90.8%

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

3. What are the top three concerns your corporation faces? (rank #1, #2, #3)

(N=446)

	Mean &				
	SD	1st	2nd	3rd	Total	
	1.73	100	52	46	198
Consumer demand	0.82	22.4%	11.7%	10.3%	44.4%

	1.86	34	29	22	85
Cost of non-fuel commodities	0.80	7.6%	6.5%	4.9%	19.1%

	1.96	49	42	44	135
Skilled labor shortage	0.83	11.0%	9.4%	9.9%	30.3%

	1.97	40	45	36	121
Interest rates	0.80	9.0%	10.1%	8.1%	27.1%

	1.98	37	38	35	110
Regulation	0.81	8.3%	8.5%	7.8%	24.7%

	1.98	18	28	17	63
Foreign competition	0.75	4.0%	6.3%	3.8%	14.1%

	2.03	23	31	25	79
Cost of fuel	0.78	5.2%	7.0%	5.6%	17.7%

	2.09	23	15	29	67
Other:	0.88	5.2%	3.4%	6.5%	15.0%

	2.10	60	73	81	214
Cost of labor (wages, salaries, bonuses)	0.81	13.5%	16.4%	18.2%	48.0%

	2.11	49	68	70	187
Health care costs	0.79	11.0%	15.2%	15.7%	41.9%

	2.26	5	7	11	23
Terrorism	0.81	1.1%	1.6%	2.5%	5.2%

	2.27	3	2	6	11
Instability stemming from Iraq	0.90	0.7%	0.4%	1.3%	2.5%

	2.29	1	3	3	7
Instability stemming from North Korea	0.76	0.2%	0.7%	0.7%	1.6%

	2.38	3	12	14	29
Currency values	0.68	0.7%	2.7%	3.1%	6.5%

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

3. What are the top three concerns your corporation faces? REVERSED SCALE & WEIGHTED BY NUMBER OF RESPONDENTS (Higher number = greater weighted importance)

	Mean	SD	Total

Consumer demand	1.01	1.25	445

Cost of labor (wages, salaries, bonuses)	0.91	1.10	445

Health care costs	0.79	1.06	445

Skilled labor shortage	0.62	1.04	445

Interest rates	0.55	1.00	445

Regulation	0.50	0.96	445

Cost of non-fuel commodities	0.41	0.91	445

Cost of fuel	0.35	0.82	445

Foreign competition	0.29	0.76	445

Other:	0.29	0.76	445

Currency values	0.11	0.44	445

Terrorism	0.09	0.43	445

Instability stemming from Iraq	0.04	0.30	445

Instability stemming from North Korea	0.03	0.23	445

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

3. What are the top three concerns your corporation faces? (rank #1, #2, #3) OTHER SPECIFIED

acquisition of another company	
Anti-Trade Regulations	
Auto industry	
Changing competitive landscape	
Channel competition/politics	
commercial demand	
Competition	
Competition	
Competition	
Competition	
competition	
competition	
competition	
competition from lower cost producers	
competition-US	
Consumer debt levels, federal debt levels, govt spending at all levels, aggressive consumer debt	
Corporate Taxation	
Customer consolidation	
debt	
Distribution	
Domestic Competition	
Domestic competition	
Domestic competition	
Economy	
Effect of Democrat control of Congress	
external stakeholder support	
foreign country instability	
general economy	
Global Expansion	
GM, Ford & DCX problems	
Housing Market	
Housing Slowdown	
housing slowdown	
housing starts	
import/supply issues	
Increased liabilites	
Industry Competition	
industry consolidation	
Instability stemming from Iran	
Job Growth	
lack of franchisees	
Lack of pricing power	
Lack of revenue growth	
lack of retail support for brands	
leadership	
local economy	
Market cycles	
material costs	
material shortages	
Merger with another company	
New Congress	
patent expirations	

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

3. What are the top three concerns your corporation faces? (rank #1, #2, #3) OTHER SPECIFIED

Pension liability	
Political Action	
Productivity	
Protectionism	
rail service	
real estate market	
rent	
secular change	
State imposed Taxes/Policies	
Technology	
Transition to a private company	
Unfair Trade Practices	
Vendor costs	
vision	
Walmart; its negative impact on many of the above categories	
winter weather	

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months? (e.g., +3%, -2%, etc.) [Leave blank if not applicable]

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Earnings	8.62	20.99	6.46 - 10.78	7	-75	160	363

Health care costs	7.53	5.87	6.93 - 8.12	8	-20	60	374

Number of foreign/off-shore outsourced
employees	7.28	32.24	2.90 - 11.66	0	-90	400	208

Technology spending	6.81	18.96	4.80 - 8.82	4	-50	200	342

Capital spending	6.67	27.79	3.69 - 9.65	3	-80	300	335

Marketing/advertising spending	6.49	18.09	4.52 - 8.45	3	-50	200	325

Dividends	4.94	17.55	1.30 - 8.59	0	-85	100	89

Cash on the balance sheet	4.93	22.98	2.26 - 7.60	0	-90	200	284

Wages/Salaries	4.16	4.88	3.68 - 4.64	3.50	-15	50	400

Number of domestic employees	3.82	14.08	2.33 - 5.30	1	-50	100	346

Productivity (output per hour worked)	3.56	5.17	2.98 - 4.13	3	-40	25	309

Prices of your products	2.08	5.34	1.54 - 2.63	3	-30	30	369

Inventory	1.27	13.54	-0.45 - 2.99	0	-50	100	238

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?

	M&A activity	Number	Percent	95% CI
	Increase	115	33.8 %	± 4.2 %
	No change	190	55.9 %	± 4.7 %
	Decrease	35	10.3 %	± 2.7 %
	Total	340	100.0 %

	Missing Cases = 106 
	Response Percent = 76.2 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months for:   [Unweighted - Sorted]

(N=446)

	Mean &	Positi-		Negat-	
	SD	ve	Zero	ive	Total
	  	1	0	-1	  	
	0.94	383	11	6	400
Wages/Salaries	0.29	95.8%	2.8%	1.5%	100.0%

	0.89	346	16	12	374
Health care costs	0.40	92.5%	4.3%	3.2%	100.0%

	0.79	251	50	8	309
Productivity (output per hour worked)	0.47	81.2%	16.2%	2.6%	100.0%

	0.66	248	73	21	342
Technology spending	0.59	72.5%	21.3%	6.1%	100.0%

	0.60	278	26	60	364
Earnings	0.76	76.4%	7.1%	16.5%	100.0%

	0.59	211	95	19	325
Marketing/advertising spending	0.60	64.9%	29.2%	5.8%	100.0%

	0.57	256	69	44	369
Prices of your products	0.70	69.4%	18.7%	11.9%	100.0%

	0.43	198	83	54	335
Capital spending	0.75	59.1%	24.8%	16.1%	100.0%

	0.42	39	48	2	89
Dividends	0.54	43.8%	53.9%	2.2%	100.0%

Number of foreign/off-shore outsourced	0.41	93	108	7	208
employees	0.56	44.7%	51.9%	3.4%	100.0%

	0.37	196	83	67	346
Number of domestic employees	0.79	56.6%	24.0%	19.4%	100.0%

	0.31	132	110	43	285
Cash on the balance sheet	0.72	46.3%	38.6%	15.1%	100.0%

	0.24	115	190	35	340
M&A activity	0.62	33.8%	55.9%	10.3%	100.0%

	0.07	83	88	67	238
Inventory	0.79	34.9%	37.0%	28.2%	100.0%

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Windsorized - Revenue Weighted - Sorted] 

	Mean	SD	95% CI	Median	Minimum	Maximum

Earnings	9.04	12.15	8.85 - 9.24	10	-40.10	64.05

Dividends	6.35	15.01	5.99 - 6.71	4	-51	63.08

Technology spending	5.56	8.97	5.42 - 5.71	3	-28.10	44.42

Capital spending	4.91	15.40	4.65 - 5.17	3	-52.80	76.02

Marketing/advertising spending	4.47	7.80	4.34 - 4.60	3	-29	44.66

Cash on the balance sheet	1.69	17.34	1.35 - 2.02	1	-54.80	71.81

Prices of your products	1.66	4.59	1.58 - 1.73	2	-11.70	17

Inventory	-0.58	8.16	-0.74 - -0.42	0	-30.50	37.46

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Windsorized - Employee Weighted - Sorted]

	Mean	SD	95% CI	Median	Minimum	Maximum

Number of foreign/off-shore outsourced employees	6.78	11.90	6.57 - 6.98	3	-43.80	57.42

Health care costs	6.74	5.02	6.67 - 6.81	6	-13.20	27.25

Wages/Salaries	3.63	2.87	3.59 - 3.67	3.50	-12.50	24.96

Productivity (output per hour worked)	3.62	3.06	3.57 - 3.67	3	-13.70	22.85

Number of domestic employees	0.97	6.46	0.87 - 1.07	1	-36.50	51.07

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [Public Companies - Windsorized - Revenue Weighted] 

	Mean	SD	95% CI	Median	Minimum	Maximum

Earnings	9.32	9.38	9.13 - 9.51	10	-40.10	40

Dividends	7.03	15.72	6.63 - 7.42	5	-51	63.08

Cash on the balance sheet	0.30	19.11	-0.17 - 0.77	2	-50	71.81

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

5. What do you expect to be the greatest drivers of profit growth for your company in 2007?  (Choose top 3) 

	 	Number	Percent	95% CI
	Greater sales of existing products/services	262	58.7 %	± 4.7 %
	Sales from new products/services	187	41.9 %	± 4.7 %
	Cost cutting (e.g., layoffs, outsourcing)	127	28.5 %	± 4.3 %
	Price increases	117	26.2 %	± 4.2 %
	Domestic Demand	104	23.3 %	± 4.1 %
	IT efficiency/IT productivity gains	79	17.7 %	± 3.7 %
	Acquisitions	76	17.0 %	± 3.7 %
	Foreign Demand (exports or products/services produced
	   and sold overseas)	69	15.5 %	± 3.5 %
	Non-IT efficiency/productivity gains	57	12.8 %	± 3.3 %
	Falling energy prices	31	7.0 %	± 2.6 %
	Alliances	27	6.1 %	± 2.4 %
	None	18	4.0 %	± 2.1 %
	Other	15	3.4 %	± 1.9 %
	Reduced non-energy input costs	11	2.5 %	± 1.8 %
	Total	1180

	Number of Cases = 446 
	Number of Responses = 1180 
	Average Number Of Responses Per Case = 2.6
	Number Of Cases With At Least One Response = 440 
	Response Percent = 98.7 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

5. What do you expect to be the greatest drivers of profit growth for your company in 2007?  (Choose top 3)  OTHER

Stable interest rates	
Interest rates	
Increased capacity	
competition closures	
Cost saving measures - nonlabor	
Sales to new markets	
more effecient labor	
new offices	
Branch sales	
favorable exchange rates	
A strong economy	
bankruptcy restructuring	
Improvement in Commodity Prices (i.e. corn)	
Claims Costs	
commodity prices	

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

6. What is the probability that the U.S. Economy will experience a recession during the next 12 months? (e.g., 0%, 50%, etc)

	Minimum = 0

	Maximum = 85

	Mean = 26.29

	Median = 25

	Variance (Unbiased) = 333.40

	Standard Deviation (Unbiased) = 18.26

	Standard Error Of The Mean  = 0.87

	95 Percent Confidence Interval Around The Mean = 24.59 - 27.99

	99 Percent Confidence Interval Around The Mean = 24.05 - 28.52

4 Groups

	 1 = 10
	 2 = 25
	 3 = 40

Valid Cases = 443 
Missing Cases = 3 
Response Percent = 99.3%

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

6. What is the probability that the U.S. Economy will experience a recession during the next 12 months? (e.g., 0%, 50%, etc)

	 	Number	Percent	Cumulative
	85	1	0.2 %	0.2 %
	80	1	0.2 %	0.5 %
	75	10	2.3 %	2.7 %
	70	1	0.2 %	2.9 %
	67	1	0.2 %	3.2 %
	66	1	0.2 %	3.4 %
	65	2	0.5 %	3.8 %
	60	16	3.6 %	7.4 %
	55	1	0.2 %	7.7 %
	50	44	9.9 %	17.6 %
	48	1	0.2 %	17.8 %
	47	1	0.2 %	18.1 %
	45	6	1.4 %	19.4 %
	40	26	5.9 %	25.3 %
	39	1	0.2 %	25.5 %
	35	11	2.5 %	28.0 %
	33	5	1.1 %	29.1 %
	30	32	7.2 %	36.3 %
	25	73	16.5 %	52.8 %
	20	57	12.9 %	65.7 %
	15	37	8.4 %	74.0 %
	10	60	13.5 %	87.6 %
	8	1	0.2 %	87.8 %
	5	18	4.1 %	91.9 %
	3	2	0.5 %	92.3 %
	2	1	0.2 %	92.6 %
	1	2	0.5 %	93.0 %
	.33	1	0.2 %	93.2 %
	0	30	6.8 %	100.0 %
	Total	443	100.0 %	100.0 %

	Missing Cases = 3 
	Response Percent = 99.3 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7a. Has your company been targeted by activist investors (e.g., activist hedge funds, pension funds, or private equity) during the past few years?

	 	Number	Percent	95% CI
	Yes	79	18.4 %	± 3.7 %
	No [Skip to Question 8]	351	81.6 %	± 3.9 %
	Total	430	100.0 %

	Missing Cases = 16 
	Response Percent = 96.4 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7b. How friendly were your interactions with the activist investor?

	 	Number	Percent	95% CI
	1=Friendly	35	44.3 %	± 12.1 %
	2=Neutral	32	40.5 %	± 12.0 %
	3=Hostile	9	11.4 %	± 8.9 %
	=Not applicable or do not know	3	3.8 %	± 9.9 %
	Total	79	100.0 %

	Mean = 1.66
	SD = .68

	Missing Cases = 0 
	Response Percent = 100.0 %

21

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7c. All in all, after responding to or warding off the activist investor, is your company better off or worse off for the experience?

	 	Number	Percent	95% CI
	1=Better off	27	34.2 %	± 11.7 %
	2=No difference	39	49.4 %	± 12.1 %
	3=Worse off	7	8.9 %	± 8.5 %
	=Not applicable or do not know	6	7.6 %	± 8.3 %
	Total	79	100.0 %

	Mean = 1.73
	SD = .63

	Missing Cases = 0 
	Response Percent = 100.0 %

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Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7d. Did you alter your corporate policies or take actions to address suggestions or demands by activist investors?

	 	Number	Percent	95% CI
	Yes	26	33.3 %	± 11.6 %
	No	52	66.7 %	± 11.4 %
	Total	78	100.0 %

	Missing Cases = 1 
	Response Percent = 98.7 %

23

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7e. Which policies did you alter or actions did you take to address suggestions or demands by activist investors?

	 	Number	Percent	95% CI
	Strategic decisions	12	46.2 %	± 23.9 %
	M&A plans (including asset sales, spin-offs, etc)	11	42.3 %	± 23.9 %
	Board representation	11	42.3 %	± 23.9 %
	Personnel changes	8	30.8 %	± 23.8 %
	Financing choices	6	23.1 %	± 23.6 %
	Repurchases	3	11.5 %	± 29.4 %
	Dividend payout	3	11.5 %	± 29.4 %
	Cash balances	2	7.7 %
	Other	2	7.7 %
	Employee compensation	1	3.8 %
	Total	59

	Number of Cases = 26 
	Number of Responses = 59 
	Average Number Of Responses Per Case = 2.3
	Number Of Cases With At Least One Response = 26 
	Response Percent = 100.0 %

24

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

7e. Which policies did you alter or actions did you take to address suggestions or demands by activist investors? OTHER

Majority voting	
Pending transaction	

25

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

8a. In the last year has your company been active in the M&A market as a buyer (seeking or acquiring targets)?

	 	Number	Percent	95% CI
	Yes	196	44.9 %	± 4.8 %
	No	241	55.1 %	± 4.8 %
	Total	437	100.0 %

	Missing Cases = 9 
	Response Percent = 98.0 %

26

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

8b. If yes, do you think the presence of private equity investors in the market is making it harder for you to buy companies at acceptable prices?

	 	Number	Percent	95% CI
	Yes	96	49.5 %	± 7.4 %
	No	98	50.5 %	± 7.4 %
	Total	194	100.0 %

	Missing Cases = 2 
	Response Percent = 99.0 %

27

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

9. If Congress could tackle only three issues in the coming year, which should they be? (Choose top 3)

	 	Number	Percent	95% CI
	Resolving the war in Iraq	254	57.0 %	± 4.7 %
	Health care costs	209	46.9 %	± 4.8 %
	Budget deficit	175	39.2 %	± 4.7 %
	Reduce US dependence on foreign oil	157	35.2 %	± 4.6 %
	Tax reform	119	26.7 %	± 4.3 %
	Social Security	112	25.1 %	± 4.2 %
	Resolving the disputes with North Korea and Iran	58	13.0 %	± 3.3 %
	Trade deficit	57	12.8 %	± 3.3 %
	Affordability and quality of education	55	12.3 %	± 3.2 %
	Medicare	39	8.7 %	± 2.8 %
	Address global warming	35	7.8 %	± 2.7 %
	Other	26	5.8 %	± 2.4 %
	Ethics investigation(s)	16	3.6 %	± 2.0 %
	Increase minimum wage	13	2.9 %	± 1.8 %
	Total	1325

	Number of Cases = 446 
	Number of Responses = 1325 
	Average Number Of Responses Per Case = 3.0
	Number Of Cases With At Least One Response = 444 
	Response Percent = 99.6 %

28

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Over the next 10 years, I expect the average
annual S&P 500 return will be: There is a 1-in-10
chance it will be less than:	3.22	5.63	2.67 - 3.76	4	-30	60	414

Over the next 10 years, I expect the average
annual S&P 500 return will be: Expected return:	8.40	6.97	7.73 - 9.06	8	-5	100	425

Over the next 10 years, I expect the average
annual S&P 500 return will be: There is a 1-in-10
chance it will be greater than:	12.22	9.08	11.35 - 13.09	10	1	100	416

Over the next year, I expect the average annual
S&P 500 return will be: There is a 1-in-10 chance it
will be less than:	0.56	7.68	-0.18 - 1.30	2	-30	78	411

Over the next year, I expect the average annual
S&P 500 return will be: Expected return:	6.96	5.41	6.45 - 7.48	6	-8	90	425

Over the next year, I expect the average annual
S&P 500 return will be: There is a 1-in-10 chance it
will be greater than:	11.70	6.01	11.12 - 12.28	10	2	60	413

29

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Revenue Weighted: 10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be less
than:	3.43	2.92	3.39 - 3.48	4	-7.81	14.25

Over the next 10 years, I expect the average annual S&P
500 return will be: Expected return:	7.88	3.29	7.84 - 7.93	8	-5	22.04

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be
greater than:	11.37	4.60	11.31 - 11.44	10	1	30

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be less
than:	-0.07	5.76	-0.15 - 0.02	1	-14.50	15.59

Over the next year, I expect the average annual S&P 500
return will be: Expected return:	6.53	3.34	6.48 - 6.58	6	-3.61	17.55

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be greater
than:	11.24	4.67	11.17 - 11.31	10	2	23.52

30

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Employee Weighted: 10. On November 10, 2006 the annual yield on 10-yr treasury bonds was 4.6%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be less
than:	3.62	3.11	3.58 - 3.67	4	-7.81	14.25

Over the next 10 years, I expect the average annual S&P
500 return will be: Expected return:	7.92	3.32	7.87 - 7.96	8	-2	22.04

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be
greater than:	11.35	4.57	11.29 - 11.41	10	1	30

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be less
than:	0.31	5.48	0.24 - 0.38	1	-14.50	15.59

Over the next year, I expect the average annual S&P 500
return will be: Expected return:	6.59	3.69	6.54 - 6.64	6	-3.61	17.55

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be greater
than:	11.28	4.88	11.21 - 11.34	10	2	23.52

31

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Industry

	 	Number	Percent	95% CI
	Manufacturing	116	26.2 %	± 4.2 %
	Banking/Finance/Insurance	82	18.6 %	± 3.8 %
	Retail/Wholesale	58	13.1 %	± 3.3 %
	Other	46	10.4 %	± 3.0 %
	Service/Consulting	33	7.5 %	± 2.6 %
	Healthcare/Pharmaceutical	26	5.9 %	± 2.4 %
	Communications/Media	24	5.4 %	± 2.3 %
	Transportation/Energy	21	4.8 %	± 2.2 %
	Mining/Construction	18	4.1 %	± 2.1 %
	Tech [Software/Biotech]	18	4.1 %	± 2.1 %
	Total	442	100.0 %

	Missing Cases = 4 
	Response Percent = 99.1 %

32

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Industry (Other specified)

Agribusiness	
Agribusiness	
agriculture	
Art Auctions	
dealership-office furnishings	
Education	
Education	
Educational University	
Electric Utility	
Electronic Distribution	
Energy	
Engineering	
Food Retail	
Forest Products	
Forestry	
Government	
Higher Ed	
Hospitality	
Hospitality	
Hospitality,Travel & Marketing	
hospitality	
Inbound Travel / Tour Operator/Domestic Retail Sales of Travel Product	
medical tech	
Multi Industry, multi-company holding corp	
non for profit/religious	
Non-Profit	
not for profit	
not for profit	
Real Estate	
Real Estate	
Real Estate	
Real Estate	
Real Estate	
Real Estate	
Real Estate	
Real Estate REIT	
real estate development	
semiconductors	
Sports/Entertainment	
Staffing/PEO	
Telecomm Network	
transport/trucking	
value added distributor	
waste paper broker	

33

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Sales Revenue

	 	Number	Percent	95% CI
	Less than $25 million	42	9.6 %	± 2.9 %
	$25-$99 million	115	26.3 %	± 4.2 %
	$100-$499 million	121	27.6 %	± 4.3 %
	$500-$999 million	42	9.6 %	± 2.9 %
	$1-$4.9 billion	55	12.6 %	± 3.2 %
	$5-$9.9 billion	21	4.8 %	± 2.2 %
	More than $10 billion	42	9.6 %	± 2.9 %
	Total	438	100.0 %

	Missing Cases = 8 
	Response Percent = 98.2 %

34

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Weighted Sales Revenue (Millions)

	Minimum = 25

	Maximum = 11000

	Mean = 1964.57

	Median = 300

	Variance (Unbiased) = 11676804.07

	Standard Deviation (Unbiased) = 3417.13

	Standard Error Of The Mean  = 163.28

	95 Percent Confidence Interval Around The Mean = 1644.54 - 2284.59

	99 Percent Confidence Interval Around The Mean = 1544.13 - 2385.00

	Skewness = 1.89

	Kolmogorov-Smirnov Statistic For Normality = 7.75

Quartiles

	 1 = 62
	 2 = 300
	 3 = 3000

Valid Cases = 438 
Missing Cases = 8 
Response Percent = 98.2%

35

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Number of Employees

	 	Number	Percent	95% CI
	Fewer than 100	52	13.9 %	± 3.2 %
	100-499	121	32.4 %	± 4.3 %
	500-999	41	11.0 %	± 2.9 %
	1,000-2,499	37	9.9 %	± 2.8 %
	2,500-4,999	21	5.6 %	± 2.2 %
	5,000-9,999	27	7.2 %	± 2.4 %
	Over 10,000	75	20.1 %	± 3.6 %
	Total	374	100.0 %

	Missing Cases = 72 
	Response Percent = 83.9 %

36

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Weighted Number of Employees

	Minimum = 100

	Maximum = 12000

	Mean = 3524.73

	Median = 750

	Variance (Unbiased) = 21757020.71

	Standard Deviation (Unbiased) = 4664.44

	Standard Error Of The Mean  = 241.19

	95 Percent Confidence Interval Around The Mean = 3052.00 - 3997.47

	99 Percent Confidence Interval Around The Mean = 2903.66 - 4145.80

	Skewness = 1.06

	Kolmogorov-Smirnov Statistic For Normality = 6.19

Quartiles

	 1 = 300
	 2 = 750
	 3 = 7500

Valid Cases = 374 
Missing Cases = 72 
Response Percent = 83.9%

37

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Headquarters

	 	Number	Percent	95% CI
	Northeast US	129	29.3 %	± 4.4 %
	Midwest US	95	21.5 %	± 4.0 %
	South Atlantic US	68	15.4 %	± 3.5 %
	Pacific US	51	11.6 %	± 3.1 %
	South Central US	41	9.3 %	± 2.9 %
	Europe	24	5.4 %	± 2.3 %
	Mountain US	12	2.7 %	± 1.8 %
	Asia	12	2.7 %	± 1.8 %
	Central/South America	6	1.4 %	± 1.5 %
	Canada	3	0.7 %	± 1.8 %
	Total	441	100.0 %

	Missing Cases = 5 
	Response Percent = 98.9 %

38

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Ownership

	 	Number	Percent	95% CI
	Private	235	58.5 %	± 4.8 %
	Public, NYSE	97	24.1 %	± 4.0 %
	Public, Nasdaq/AMEX	43	10.7 %	± 2.9 %
	Nonprofit	21	5.2 %	± 2.2 %
	Government	6	1.5 %	± 1.5 %
	Total	402	100.0 %

	Missing Cases = 44 
	Response Percent = 90.1 %

39

Duke University/CFO Magazine Business Outlook Survey - U.S. - Autumn, 2006

Foreign Sales

	 	Number	Percent	95% CI
	0%	169	38.6 %	± 4.7 %
	1-24%	165	37.7 %	± 4.6 %
	25-50%	58	13.2 %	± 3.3 %
	Over 50%	46	10.5 %	± 3.0 %
	Total	438	100.0 %

	Missing Cases = 8 
	Response Percent = 98.2 %