Greenlight Company Presentation
iPrefs Impact the Common Stock
Math on distributing 5 iPrefs per Apple common share:
Apple net income
Less: iPref dividends
Pro forma net income
Constant P/E multiple
New Apple price per share
Current price per share
Change in price per share
Greenlight Capital, Inc.
$ billions
42.5
(9.5)
33.0
$ per share
$45
($10)
$35
10.0x
$350
$450
($100)
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Here is the math on distributing 5 iPrefs per Apple share. It shows the reduction in net income
available to the common stock and earnings per share.
Distributing 5 iPrefs per Apple common share results in $9.5 billion in additional dividends or $10 per
common share.
This reduces Apple's earnings per share from $45 to $35. At a constant P/E multiple of 10.0x, the
new Apple price is $350 or $100 less than the current price of $450.
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