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.
Apple
¡Pref
Apple
Common
Stock
$47 billion Face Value (liq. pref)
$1.9 billion Dividend Annually
Trading Price (4% yield)
$43 Earnings Per Share
$145 Cash (still)
10.0x P/E = $430 / Share
$50
+
$430
Total Value = $480
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Although the value of the common equity is now lower, if you add the value that the shareholder gets
from the iPrefs he receives, the total is a net gain.
In the example of a $47 billion iPref issuance, the holder of one share of Apple common stock
receives an iPref worth $50, which is added to the new value of the common stock, which is $430.
That's $480 of total value which is $30 higher than the current stock price.
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