Greenlight Company Presentation

Doubling the Dividend o If Apple doubled its dividend to $21.20 per share: Pro Forma Dividend Yield Pro forma share price % premium to current Implied P/E 4.00% $530 18% 11.8x Greenlight Capital, Inc. 4.25% $499 11% 11.1x 4.50% $471 5% 10.5× o A stock with a low P/E that raises its dividend often remains a low P/E stock with a more attractive dividend 27 We believe that equity investors have to look to a wide range of valuation metrics and business issues when valuing the common stock. The equity market is more interested in Apple's total earnings, and the business issues that drive those earnings: Will the company maintain market share and operating margins? Will they beat earnings estimates? What new products will they introduce? These issues will most likely dictate the common equity valuation and trump the dividend yield metric. Often when a stock with a low P/E introduces or raises its dividend, it just becomes a stock with a low P/E and an attractive dividend. 27

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