Operating assumptions Exhibit 12B Modernized Unmodernized Thin-slab Minimill Integrated Mill Integrated Mill HR CR HR CR HR CR Operating assumptions Labor / hour .00 .00 .50 .50 .50 .50 Scrap / ton .00 .00 .00 .00 .00 .00 Man hours / ton 1.75 2..85 4..90 5.85 Capacity Utilization 90.00% 90.00% 90.00% 90.00% 75.00% 75.00% Operation costs / ton Labor .00 .00 .00 5.50 .50 1.00 Ore Coal ..5 Energy .5 25 Scrap .5 9..5 15.5 Materials and supplies ..5 95.5 Maintenance & repairs ...5 Total costs / ton 5.00 3.00 1.50 9.00 0.00 3.00 Revenue / ton 6.50 0.50 6.00 4.50 5.00 3.00 Summary CF analysis- thin slab Original Adj.

1 (price growth rate) Adj. 2 (Operating Cost Growth Rate) Adj. 3 (discount rate decreases) Year 5 CF: 71....78 Year 5 Assets: Year 5 ROA: 36.62% 53.49% 44.52% 36.62% CF analysis-thin slab Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Thin Slab Minimill Capacity(million of tons of steel) Shipments (12A) - Hot-rolled sheets (HR) (12A) .25 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - Cold-rolled sheets (CR) (12A) ..35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 306.............72 - Cold-rolled sheets (CR) (12B) 390.............20 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........36 - Cold-rolled sheets (CR) 0.00 0.00 0...........82 Operating costs / ton - Hot-rolled sheets (HR) (12B) ............23 - Cold-rolled sheets (CR) (12B) ............09 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........12 - Cold-rolled sheets (CR) 0.00 0.00 0...........58 Depreciate over 10 years 0.00 0.00 0...........00 Income - Hot-rolled sheets (HR) 0.00 0.00 0...........24 - Cold-rolled sheets (CR) 0.00 0.00 0...........24 Total income

Operating Assumptionsexhibit 12bmodernizedunmodernizedthin Slab Minimi

Operating assumptions Exhibit 12B Modernized Unmodernized Thin-slab Minimill Integrated Mill Integrated Mill HR CR HR CR HR CR Operating assumptions Labor / hour $20.00 $20.00 $23.50 $23.50 $23.50 $23.50 Scrap / ton $90.00 $90.00 $80.00 $80.00 $80.00 $80.00 Man hours / ton 1.75 2..85 4..90 5.85 Capacity Utilization 90.00% 90.00% 90.00% 90.00% 75.00% 75.00% Operation costs / ton Labor $35.00 $53.00 $67.00 $105.50 $91.50 $141.00 Ore Coal ..5 Energy .5 25 Scrap .5 9..5 15.5 Materials and supplies ..5 95.5 Maintenance & repairs ...5 Total costs / ton $225.00 $283.00 $261.50 $349.00 $300.00 $403.00 Revenue / ton $306.50 $390.50 $326.00 $454.50 $325.00 $453.00 Summary CF analysis- thin slab Original Adj.

1 (price growth rate) Adj. 2 (Operating Cost Growth Rate) Adj. 3 (discount rate decreases) Year 5 CF: 71....78 Year 5 Assets: Year 5 ROA: 36.62% 53.49% 44.52% 36.62% CF analysis-thin slab Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Thin Slab Minimill Capacity(million of tons of steel) Shipments (12A) - Hot-rolled sheets (HR) (12A) .25 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - Cold-rolled sheets (CR) (12A) ..35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 306.............72 - Cold-rolled sheets (CR) (12B) 390.............20 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........36 - Cold-rolled sheets (CR) 0.00 0.00 0...........82 Operating costs / ton - Hot-rolled sheets (HR) (12B) ............23 - Cold-rolled sheets (CR) (12B) ............09 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........12 - Cold-rolled sheets (CR) 0.00 0.00 0...........58 Depreciate over 10 years 0.00 0.00 0...........00 Income - Hot-rolled sheets (HR) 0.00 0.00 0...........24 - Cold-rolled sheets (CR) 0.00 0.00 0...........24 Total income $0.00 $0.00 $0.00 $16.08 $63.69 $67.36 $71.17 $75.14 $79.26 $83.55 $88.01 $92.65 $97.48 Taxes $0.00 $0.00 $0.00 $5.63 $22.29 $23.57 $24.91 $26.30 $27.74 $29.24 $30.80 $32.43 $34.12 Income after taxes $0.00 $0.00 $0.00 $10.45 $41.40 $43.78 $46.26 $48.84 $51.52 $54.31 $57.21 $60.23 $63.36 Add back depreciation $0.00 $0.00 $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 Subtract capital expenditures -$280.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtract startup costs 30.00 Subtract working capital costs 30.00 Cash flow -280.00 0.00 0...........36 Internal rate of return (IRR) 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Discounted cash flow $0.00 $0.00 $85.61 $60.35 $62.42 $64.57 $66.82 $69.15 $71.57 $74.09 $76.72 $79.45 Sum of discounted cash flow $710.74 Investment criterion: 25% ROA by year 5?

Year 5 CF: 71.78 Year 5 Assets: 196.00 Year 5 ROA: 36.62% CF analysis-thin slab - Adj #1 Assumptions: Annual growth rate of price of steel 6.84% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Thin Slab Minimill Capacity(million of tons of steel) Shipments (12A) - Hot-rolled sheets (HR) (12A) .25 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - Cold-rolled sheets (CR) (12A) ..35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 306.............01 - Cold-rolled sheets (CR) (12B) 390.............83 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........01 - Cold-rolled sheets (CR) 0.00 0.00 0...........34 Operating costs / ton - Hot-rolled sheets (HR) (12B) ............23 - Cold-rolled sheets (CR) (12B) ............09 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........12 - Cold-rolled sheets (CR) 0.00 0.00 0...........58 Depreciate over 10 years 0.00 0.00 0...........00 Income - Hot-rolled sheets (HR) 0.00 0.00 0...........89 - Cold-rolled sheets (CR) 0.00 0.00 0...........76 Total income $0.00 $0.00 $0.00 $29.81 $102.28 $118.22 $135.53 $154.32 $174.70 $196.78 $220.71 $246.61 $274.65 Taxes $0.00 $0.00 $0.00 $10.43 $35.80 $41.38 $47.44 $54.01 $61.14 $68.87 $77.25 $86.32 $96.13 Income after taxes $0.00 $0.00 $0.00 $19.37 $66.48 $76.84 $88.10 $100.31 $113.55 $127.91 $143.46 $160.30 $178.52 Add back depreciation $0.00 $0.00 $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 Subtract capital expenditures -$280.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtract startup costs 30.00 Subtract working capital costs 30.00 Cash flow -280.00 0.00 0...........52 Internal rate of return (IRR) 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Discounted cash flow $0.00 $0.00 $93.37 $82.16 $91.17 $100.95 $111.57 $123.09 $135.57 $149.10 $163.74 $179.58 Sum of discounted cash flow $1,230.30 Investment criterion: 25% ROA by year 5?

Year 5 CF: 104.84 Year 5 Assets: 196.00 Year 5 ROA: 53.49% CF analysis-thin slab 1-Adj #2 Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 2.00% Tax rate 35.00% Discount rate 15.00% Thin Slab Minimill Capacity(million of tons of steel) Shipments (12A) - Hot-rolled sheets (HR) (12A) .25 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - Cold-rolled sheets (CR) (12A) ..35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 306.............72 - Cold-rolled sheets (CR) (12B) 390.............20 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........36 - Cold-rolled sheets (CR) 0.00 0.00 0...........82 Operating costs / ton - Hot-rolled sheets (HR) (12B) ............35 - Cold-rolled sheets (CR) (12B) ............91 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........68 - Cold-rolled sheets (CR) 0.00 0.00 0...........62 Depreciate over 10 years 0.00 0.00 0...........00 Income - Hot-rolled sheets (HR) 0.00 0.00 0...........68 - Cold-rolled sheets (CR) 0.00 0.00 0...........20 Total income $0.00 $0.00 $0.00 $22.81 $82.18 $91.17 $100.61 $110.52 $120.92 $131.83 $143.28 $155.29 $167.88 Taxes $0.00 $0.00 $0.00 $7.98 $28.76 $31.91 $35.21 $38.68 $42.32 $46.14 $50.15 $54.35 $58.76 Income after taxes $0.00 $0.00 $0.00 $14.83 $53.42 $59.26 $65.40 $71.84 $78.60 $85.69 $93.13 $100.94 $109.12 Add back depreciation $0.00 $0.00 $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 Subtract capital expenditures -$280.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtract startup costs 30.00 Subtract working capital costs 30.00 Cash flow -280.00 0.00 0...........12 Internal rate of return (IRR) 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Discounted cash flow $0.00 $0.00 $89.42 $70.80 $75.88 $81.21 $86.81 $92.69 $98.86 $105.33 $112.12 $119.24 Sum of discounted cash flow $932.37 Investment criterion: 25% ROA by year 5?

Year 5 CF: 87.26 Year 5 Assets: 196.00 Year 5 ROA: 44.52% CF analysis-thin slab- Adj #3 Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 10.00% Thin Slab Minimill Capacity(million of tons of steel) Shipments (12A) - Hot-rolled sheets (HR) (12A) .25 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - Cold-rolled sheets (CR) (12A) ..35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 306.............72 - Cold-rolled sheets (CR) (12B) 390.............20 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........36 - Cold-rolled sheets (CR) 0.00 0.00 0...........82 Operating costs / ton - Hot-rolled sheets (HR) (12B) ............23 - Cold-rolled sheets (CR) (12B) ............09 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0.00 0.00 0...........12 - Cold-rolled sheets (CR) 0.00 0.00 0...........58 Depreciate over 10 years 0.00 0.00 0...........00 Income - Hot-rolled sheets (HR) 0.00 0.00 0...........24 - Cold-rolled sheets (CR) 0.00 0.00 0...........24 Total income $0.00 $0.00 $0.00 $16.08 $63.69 $67.36 $71.17 $75.14 $79.26 $83.55 $88.01 $92.65 $97.48 Taxes $0.00 $0.00 $0.00 $5.63 $22.29 $23.57 $24.91 $26.30 $27.74 $29.24 $30.80 $32.43 $34.12 Income after taxes $0.00 $0.00 $0.00 $10.45 $41.40 $43.78 $46.26 $48.84 $51.52 $54.31 $57.21 $60.23 $63.36 Add back depreciation $0.00 $0.00 $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 Subtract capital expenditures -$280.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtract startup costs 30.00 Subtract working capital costs 30.00 Cash flow -280.00 0.00 0...........36 Internal rate of return (IRR) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Discounted cash flow $0.00 $0.00 $89.50 $63.09 $65.26 $67.51 $69.85 $72.29 $74.83 $77.46 $80.21 $83.06 Sum of discounted cash flow $743.05 Investment criterion: 25% ROA by year 5?

Year 5 CF: 71.78 Year 5 Assets: 196.00 Year 5 ROA: 36.62% CF analysis - Modernize Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Modernized integrated mill Capacity(million of tons of steel) 0 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Shipments (12A) - Hot-rolled sheets (HR) (12A) 0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 - Cold-rolled sheets (CR) (12A) 0 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 326..........................06 - Cold-rolled sheets (CR) (12B) 454..........................62 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0..........................03 - Cold-rolled sheets (CR) 0..........................69 Operating costs / ton - Hot-rolled sheets (HR) (12B) 261..........................12 - Cold-rolled sheets (CR) (12B) 349..........................38 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0..........................94 - Cold-rolled sheets (CR) 0..........................01 Depreciate over 25 years 0 74.........................92 Income - Hot-rolled sheets (HR) 0..........................09 - Cold-rolled sheets (CR) 0..........................68 Total income 214.........................85 Taxes 74.........................05 Income after Taxes 139.........................80 Add back depreciation 0 74.........................92 Subtract capital expenditures -1, Cash flow -1,.........................72 Internal rate of return (IRR) 14% Discounted cash flow -$1,873.00 $186.14 $192.68 $199.47 $206.54 $213.89 $221.53 $229.48 $237.75 $246.35 $255.29 $264.59 $274.26 $284.32 $294.78 $305.66 $316.97 $328.74 $340.98 $353.70 $366.94 $380.70 $395.02 $409.91 $425.39 $441.50 n years Sum of discounted cash flow $5,499.58 Investment criterion: 25% ROA by year 5?

Year 5 CF: 245.97 Year 5 Assets: 1498.4 Year 5 ROA: 16.42% 0. CF analysis - Unmodernized Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Unmodernized integrated mill Capacity(million of tons of steel) 0 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Shipments (12A) - Hot-rolled sheets (HR) 0 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 1.68 - Cold-rolled sheets (CR) 0 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 Revenue / ton - Hot-rolled sheets (HR) (12B) 325..........................40 - Cold-rolled sheets (CR) (12B) 453..........................62 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0..........................55 - Cold-rolled sheets (CR) 0..........................23 Operating costs / ton - Hot-rolled sheets (HR) (12B) .........................75 - Cold-rolled sheets (CR) (12B) .........................33 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0..........................58 - Cold-rolled sheets (CR) 0..........................28 Depreciate over 25 years (no expenditure to dep.) Income - Hot-rolled sheets (HR) 0..........................97 - Cold-rolled sheets (CR) 0..........................96 Total income 0..........................92 Taxes 0 34.........................57 Total Income after Tax 64.........................35 Add back depreciation Subtract capital expenditures Cash flow 0 64.........................35 IRR Discounted cash flow $0.00 $56.43 $58.69 $61.04 $63.48 $66.02 $68.66 $71.40 $74.26 $77.23 $80.32 $83.53 $86.87 $90.35 $93.96 $97.72 $101.63 $105.69 $109.92 $114.32 $118.89 $123.65 $128.59 $133.74 $139.09 $144.65 n Sum of discounted cash flow $2,350.13 Investment criterion: 25% ROA by year 5?

Year 5 CF: 75.92 Year 5 Assets: 0.00 Year 5 ROA: N/A CF analysis - Formerly Unmodern Assumptions: Annual growth rate of price of steel 4.00% 6.84% (historical) Annual growth rate of operating costs 4.00% Tax rate 35.00% Discount rate 15.00% Unmodernized integrated mill Capacity(million of tons of steel) 0 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Shipments (12A) - Hot-rolled sheets (HR) 0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 - Cold-rolled sheets (CR) 0 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 Revenue / ton - Hot-rolled sheets (HR) (12B) 325..........................40 - Cold-rolled sheets (CR) (12B) 453..........................62 Total revenue (shipment*rev/ton) - Hot-rolled sheets (HR) 0..........................43 - Cold-rolled sheets (CR) 0..........................29 Operating costs / ton - Hot-rolled sheets (HR) (12B) 261..........................12 - Cold-rolled sheets (CR) (12B) 349..........................38 Total operating costs(shipment*cost/ton) - Hot-rolled sheets (HR) 0..........................94 - Cold-rolled sheets (CR) 0..........................01 Depreciate over 25 years (no expenditure to dep.) 74.........................92 Income - Hot-rolled sheets (HR) 0..........................49 - Cold-rolled sheets (CR) 0..........................28 Total income 0..........................77 Taxes 0 99.........................42 Total Income after Tax 185.........................35 Add back depreciation 0 74.........................92 Subtract capital expenditures - Cash flow -.........................27 IRR 16% Discounted cash flow -$1,628.70 $226.07 $232.50 $239.20 $246.16 $253.40 $260.93 $268.76 $276.90 $285.37 $294.18 $303.34 $312.87 $322.78 $333.09 $343.80 $354.95 $366.54 $378.60 $391.14 $404.18 $417.74 $431.84 $446.51 $461.76 $477.63 n Sum of discounted cash flow $6,701.55 Investment criterion: 25% ROA by year 5?

Year 5 CF: 291.41 Year 5 Assets: 1,498.40 Year 5 ROA: 0. Q1 : You take $500 that you held as currency and put it into the banking system. The reserve ratio is equal to 20% A) Calculate the money multiplier. B) By how much will increase the total amount of deposits in the banking system? C) By how much will increase the money supply?

Q2 : At the beginning of 2018, a town has 152,000 employed people and 8000 unemployed people. The remaining 40,000 people in the town are not in the labor force. Based on these​ numbers: A) Calculate the​ town's unemployment rate: B) Calculate the​ town's labor force participation rate: C) Calculate Suppose that 10,000 people decide to join the labor force. Of these 10,000 people 7,800 find jobs. What is the unemployment rate at the end of 2018?

Q3: Suppose that the T-account for First National Bank is as follows: The First National Bank Assets Liabilities Reserves $100,000 Deposits $500,000 Loans 400,000 A) If the Fed requires banks to hold 5 percent of deposits as reserves, how much in excess reserves does First National Bank now hold? B) Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increase? Answer: