Greenlight Company Presentation
How iPrefs Work
Apple
Common
Stock
Tax-Free
Distribution
$45 Earnings Per Share
$145 Cash Per Share
10.0x P/E = $450 / Share
Current Value = $450
Greenlight Capital, Inc.
5 Apple
iPrefs
Apple
Common
Stock
$236 billion Face Value (liq. pref)
$9.5 billion Dividend Annually
Trading Price (4% yield)
$35 Earnings Per Share
$145 Cash (still)
10.0x P/E = $350 / Share
$250
+
$350
Total Value = $600
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Again, even though the value of the common equity is now lower, the combined value to the
shareholder is a net gain.
In the example of a $236 billion distribution of 5 iPrefs per common share, the holder of one share of
Apple common stock receives $250 worth of iPrefs and still has the common stock, worth about $350
per share. We expect the total value to be about $600 per share, or $150 higher than the current
stock price today.
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